Recently, the news has been full of headlines about rising interest rates and how they will affect potential home buyers. The folks over at Keeping Current Matters reminds us that rising rates impact purchasing power by raising the buying costs as well as limiting how much a buyer can comfortably afford. They put together the chart below to further illustrate this point.
“…it costs more to buy a home today than it did last year, but the same is true for renting. This means, either way, you’re going to be paying more. The difference is, with homeownership, you’re also gaining equity over time which will help grow your net worth…”