Interest Rates Could Hit 4.4% by Year End.

A rise in interest rates will affect both the buyer and the seller. As always, Cost trumps Price. As interest rates go up, Cost goes up even if Price stays the same. Instead of being able to pay for a higher priced home, the buyers will be giving more of their allotted monthly payments to the bank. In Lincoln Square, where the average sale price is $758,688, that is an additional $340 per month just in interest. At today's rates, $340 per month can buy an additional $75,000 of house. But by waiting the buyer may have to settle for a smaller house, and the seller will have a smaller pool of potential buyers. A buyer could actually be "costed" out Lincoln Square by waiting. This is a lose/lose situation.