It’s a seller’s market and you may be tempted to let prices cool off before buying a home, but a wait-and-see strategy can backfire in a big way.

Purchase price isn’t the only consideration when it comes to home affordability. Even a small increase in mortgage rates can make a big difference.

With rates on the rise, waiting for a lower purchase price could leave you paying more, buying less home for the same price, or worse, completely priced out of the market.

Here’s an example of a modest interest rate increase on a 30-year fixed rate mortgage. As you can see, there's quite a bit of risk and very little benefit to waiting.