Imagine buying a house is like buying a really big toy! Two things matter a lot: how much the house costs (the price) and how much you pay extra to borrow money to buy it (the interest rate). Lower interest rates make borrowing easier, but houses might cost more then. Higher interest rates mean borrowing is harder, but houses might be cheaper.
- House prices and interest rates often go in opposite directions.
- Lower interest rates mean more people want to buy, making prices go up.
- Higher interest rates make fewer people buy, so prices might go down.
- But right now, it’s unusual: prices are high even though interest rates are high!
| House Price | Interest Rate | Down Payment (20%) | Monthly Payment (approx.) |
|---|---|---|---|
| $220,000 | 6.75% | $44,000 | $1,142 |
| $300,000 | 5.75% | $60,000 | $1,400 |
Choosing the right house depends on how much money you have for a down payment and what you can afford each month. There's no easy answer; it depends on your situation!
