In nominal dollars yes... but the downside risk was the true cost.

Get in at a low rate and comfortably afford it, then you're doing great despite maybe being underwater for now. But default while underwater and lose whatever you put down plus the difference in price.

TINFA but, exposure to real estate is generally/historically a good hedge to keep pace with wage inflation. I disagree with OP; getting in before rate hikes wasn't necessarily a mistake. But mortgages work the same way that ESPPs and RSU grants work, banks/companies/governments hedge downside risk by convincing a whole bunch of people to be long on a stock (or real estate).