How Do Rising Interest Rates Affect Home Affordability?

The market finally exhaled, and that breath of calm changes everything for buyers and sellers. We sit down with Lori Thompson, a Colorado Springs real estate pro, to unpack how interest rates actually flow through your monthly budget, why a balanced market unlocks negotiation power, and which financing strategies stretch buying power without stretching you too thin. If you’ve been stuck between waiting for “perfect” rates and wanting stability now, this conversation gives you a clear, practical path.

Lori walks us through the real drivers of affordability—principal and interest, yes, but also fast-rising homeowners insurance and shifting property taxes. We compare the bidding-war years of waived inspections and wild escalations with today’s landscape of concessions, price reductions, and thoughtful offers. You’ll hear how a 2-1 buydown can create a softer landing in year one and two, why adjustable-rate mortgages can be smart when caps and indexes are understood, and where assumable mortgages can slash payments if you can bridge the cash-to-loan gap.

Beyond products and payments, we focus on lifestyle and resilience. Lori asks the questions lenders don’t: Do you still want to eat out, travel, and sleep at night? Would you rather own a bit less house and have more life? We map out long-term planning—how to think about time horizons, what to do if you need to move sooner than planned, and why renting out a home can keep your equity compounding while a tenant pays down the note. Sellers aren’t left out either; we cover realistic pricing, seller-paid buydowns, and how strong concessions can revive buyer affordability.

If you’re ready to buy now and refinance later, or you want to negotiate like the market finally favors you, this episode delivers a toolkit you can use today. Subscribe, share this with someone weighing a move, and leave a review to tell us which strategy you’ll try first.

To learn more about RE/MAX Properties Inc. visit:
https://www.LoriThompson.REMAX.com
RE/MAX Properties Inc.
Colorado Springs
719-332-1807