Now or Later?

Interesting analysis... Borrower is concerned that home prices are not done falling. Assuming that the home drops $10,000 next year, but the rate increases - how does this impact the monthly payment?

Today:
Sale Price $250,000
Rate 4.375%
Payment $1,248

Next Year:
Sale Price $240,000
Rate 5.875%
Payment $1,420

With a $10,000 drop in price, the monthly payment will increase $172 per month or $2,064 per year!

Interest rates are ridiculous right now - it certainly doesn't seem like they could go down any further. Home pricing is mostly improving to flat, not even negative - this all adds up to a great time to buy.