Sales price definitely does matter though. It was problematic in the 2008 period because housing prices shot up so fast, then crashed, leaving people with house

Sales price definitely does matter though. It was problematic in the 2008 period because housing prices shot up so fast, then crashed, leaving people with houses that were deeply underwater. Although you can 'afford' more sales price with a monthly payment based on a 0% interest loan vs. a 10% loan, it puts you at greater risk. With a higher interest loan, you have more slack to potentially refinance in the future. Also, taxes and insurance are based (roughly) on the price of the house, not based on the monthly payment. The 2.5x-3x annual salary was always a rough rule of thumb, but when I hear people talking about 5-7x their salary... there's very few ways where that house makes sense.