Lower Interest Rate vs. Lower Loan Amount

[Brian Sanchez]

I live in LA/Orange County market and work as a loan officer and am interested in buying my first SFR or MFH. It's my observation that an overwhelming majority of folks that are buying homes that are 700K+ are taking the equity this latest round of appreciation has afforded them to 'buy up'. It is so expensive that I don't come across very many first time home-buyers buying SFR's. As a result I personally don't see how property values can maintain a current home-owners start to cycle out (or just buy their last home). Its my opinion that property values will begin to flatten if not come down a bit once rates begin to rise (which is inevitable). So IF you believe that premise and that I can comfortably afford the home, my question is, would it be better to buy a property with today's' low interest rates (higher loan amount) or buy once values come down and end up with 'tomorrow's' higher rates (lower loan amount)?