Interest rates are one of the most crucial factors in determining the true cost of buying a home. Even a small shift in rates can have a lasting impact on your mortgage payments and overall home affordability. Let’s dive into the ways interest rates influence the cost of homeownership and what buyers should keep in mind as they navigate today’s market.

For most of the last decade, interest rates were low, and home prices were high, which meant people could afford a house if they could get financing. However, inflation has heated up over the past few months, and interest rates have followed suit. If you're looking to buy a house in 2023, the interest rates will likely be higher than last year.