Many people sit on the fence waiting for the perfect chance to buy. Then, the day comes, interest rates rise and the market passes them by. Don't be that person.
The federal reserve bank has indicated that they are likely to rate the federal funds rate three to four times this year. When this kind of announcement is made, almost immediately mortgage interest rates rise.
In most metropolitan areas of California the average home purchase is well above $500,000. A mortgage of $400,000 at 4% will cost approximately $1910, the same mortgage at 5% is $2147 an increase of $237.