Years ago we were told not to buy because interest rates would go up... we DID buy. Our house has gone up by over 190k in less than 4 years and we have not had the hideous interest rate increases. If we didn't buy, we would have been in the same position as our friends, with prices creeping up every month and no chance of even an entry level house. I am glad we didnt listen then, but we are definitely always listening in general to whats happening. I guess the key is not over extending yourself and making sure you are able to pay a mortgage even if the rates go up. like you say, if you can afford it, go for it. SO much better than renting imo.