According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.96%, which is still near record lows in comparison to recent history!
The interest rate you secure when buying a home not only greatly impacts your monthlyhousing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Expertspredictthat mortgage rates will be closer to 5% by this time next year.
Act now to get the most house for your hard-earned money.
Author:Connie White Phone: 843-532-3356 Dated: July 20th 2017 Views: 84 About Connie: My personal venture into real estate was driven by the desire to provide an enjoyable environme...
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"5 stars KevinThorp 09/01/2013 I am very happy with my Realtor specifically … Connie White. We had been trying to sell some land for a number of years, starting with another realty company, with disappointing results. The agent was very motivated and attentive... until I signed the contract. Then I rarely heard from from him, and when I did, it was mostly excuses. So we tried selling it ourselves, also without luck. We got plenty of calls, but they were either unqualified to buy or made extremely low offers. Finally I hired Connie White. What a refreshing difference! She is very energetic and doesn't know the meaning of the word no. Connie went after leads like a laser-guided cruise missile and always kept us informed by email, phone calls and in-person meetings. In this tough market we expected to take a big hit on our asking price, but were VERY pleased at the final sale price. My family and I highly recommend Connie! "