Mortgage rates reached an average of 5% last week, according to Freddie Mac. Though rising rates can sometimes have a slowing effect on home appreciation, prices are also expected to continue to increase this year.

With both costs on the rise, first-time homebuyers and other cash-strapped buyers will likely have more trouble than usual navigating the housing market this year. If you’re thinking about buying a home, it’s important to know what you can afford and be prepared to lock in a rate sooner rather than later. READ MORE