Just this week I heard an American housing expert say that the most important thing to Buyers is the monthly mortgage payment, not the cost of the home in response to a questions about rising interest rates.
It got me thinking. It's a tricky question as the 2 are definitely related so I ran a questionnaire in my IG stories & 2/3 of respondents agreed.
I agree too & here's why based on my experience. When interest rates are low, Buyers realize that they're able to pay more (important in our multiple offer real estate world) without a big impact to their mortgage payment. They are focused on that monthly figure more than the big one-the cost of the home.
When interest rates begin to rise, Buyers once again look to what that rising cost will do to their monthly payment, Because so many Buyers are stretched to their limit, expecially in large urban centres, that increase in payment could take Buyers out of the running.
So, yes, the major cost of a home is important but it's all about the regular mortgage payments for Buyers.