Beyond the Rate, August Newsletter
Beyond the Rate · The Bigger Picture
The rate was higher. The return was bigger.
If you purchased a home within the last 4 years, you may have wondered whether you should have waited for a lower interest rate. But your rate is only one part of the story.
Look at the full picture
Was the higher rate really a bad financial move?
We compared 4 years of average mortgage rates with the appreciation homeowners gained during that same period. The goal is not to tell you there is one “perfect” time to buy. It is to show why the interest rate alone does not tell the whole story.
01 · The payment difference
4 years of average rates compared with 5%.
Illustrative example based on a $400,000 loan with a 30-year fixed term. Monthly amounts reflect principal and interest only.
Average rate5.34%
Average rate6.81%
Average rate6.72%
Average rate6.65%
02 · While You Were Making Payments
What the home was doing the whole time.
While higher payments may have felt like the cost of buying at the “wrong time,” home values were continuing to grow in the background.
Average annual appreciation
National example using historical and forecasted figures for illustration. Local markets vary. Source data noted in the original analysis: MBS Highway, FRED and NAR.
The bigger picture
You may have paid more for the rate, and gained more through the home.
That is why our team never wants buyers or homeowners to look at the interest rate alone. The right decision depends on your payment, your budget, your goals, the local market and the equity you may build along the way.
Your rate was one part of the equation. It was never the whole story.
Your numbers tell your story
Curious where your numbers land?
If you purchased a home in the last few years with a rate above 5%, our team would be happy to review your actual payment and estimated appreciation numbers—complimentary, with no pressure and no obligation.