Popular among seasonal homeowners as well as year-round residents, properties featuring Guest Homes are in high demand. There are currently some beautiful properties for sale in Wellington, FL
Low Interest Rates Have A High Impact On Your Purchasing Power
Dated: 11/28/2017
Views: 4
Low Interest Rates Have a High Impact on Your Purchasing Power
According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.92%, 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 monthly housing 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). Experts predict that mortgage rates will be closer to 5% by this time next year.
Act now to get the most house for your hard-earned money.
To find out what your home is worth in today's market without obligation - Click HERE
Chris and Sue Kull
Keller Williams Realty
561-440-0777
To search homes for sale without obligation – click HERE
Latest Blog Posts
Should Boomers Buy or Rent after Selling?In a recent CNBC article, it was reported that many baby boomers are selling their current homes and moving into rentals, rather than purchasing
Home Prices Up 6.54% Across the Country!Some Highlights: The Federal Housing Finance Agency (FHFA) recently released their latest Quarterly Home Price Index report. In the
Why Getting Pre-Approved Should Be Your First StepIn many markets across the country, the number of buyers searching for their dream homes greatly outnumbers the number of homes for sale.
© 2018 Beaches MLS Information deemed reliable, but not guaranteed
