Prices are rising. Interest rates are rising. These are two facts - and working in tandem - they affect the price of home that you can afford.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5%. Experts predict that mortgage rates will be closer to 5% by this time next year. So if you can afford $525,000 today - if interest rates climb - you would only afford $467,600 later. And if home prices continue to rise - then your choices become slimmer.