When 30 year mortgages topped 7% last year I knew the impact was going to be meaningful. I recall in 2015 when rates fell below 4% it was a gift, even if it wasn’t fully realized for several years later.

I think I locked in around 3.75% at the time and opened up a HELOC with a local credit union at prime -0.5%. Even with the rate increases, that credit union has stayed around the 5.5% mark surprisingly, which quite frankly is a steal.

I will occasionally draw on the line and get some work done on the house, or even put it to work in the market if an opportunity presents itself that I know will be very short lived. They do happen.

One of my first posts when I decided to resurrect the blog was The Affordability Equation, which walked through a scenario where two young couples found themselves in very different situations based on the new rate environment.

Housing, especially your first, is 80% emotional and 20% financial. Low rates and abundant housing supply made it mostly a stress-free exercise. Fast forward to today and it’s the exact opposite. You are forced to buy high and pay high, in terms of monthly payments.

When you factor in the emotional side of that equation, and the buy now ask questions later mentality, it’s easy to make mistakes that could impact your bottom line for many many years.

The article below which was shared via Bloomberg’s Odd Lots newsletter is a good read and refresher on the current state of housing and food for thought regardless of whether you are on the buy side or sell side.

Enjoy your weekend….

Nearly Everyone With a Mortgage Has an Interest Rate Below 6%, Prompting Many to Stay Put