Just for fun I decided to run an experiment. Parameters:
Home price: $175,000
Mortgage payment: $980/month (my budget allows up to $1k/month to go towards a home, realistically)
When interests rates were at 3%, that would mean my down-payment would need to be $35,000 (20%) to achieve that monthly payment amount
With today’s interest rate of ~5%, to achieve the exact same payment for the exact same house and purchase price, I would need to pay $63,000 (36%) as a down-payment.
Guess who still doesn’t have a house despite finally having $35,000 ready to throw down 🙂