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

For More Info: Home for Sale North Carolina

http://d39ah2zlibpm3g.cloudfront.net/wp-content/uploads/2017/11/27152024/20171128-STM-ENG.jpg
 

Comments

Post a Comment

Popular posts from this blog

You Need an Agent Who Will Always Put You First

-
Image
Whether you are a rookie homebuyer or have gone through the process many times, having a  local real estate expert  who is well versed in the neighborhood you are looking to move to, as well as the trends of that area, should be your goal while home shopping. One great example of an agent who is in your corner and is always looking out for your best interests is one of the main characters on  ABC’s  Modern Family ,  Phil Dunphy. For those who aren’t familiar with the character, Phil is a REALTOR ®  with a huge heart who always strives to do his best for his family and his clients. In one episode, he even shared an oath that he created and holds himself accountable to: “On my honor, I promise to aid in man’s quest for shelter, to recognize I’m not just in the business of houses — I’m in the business of dreams in the shape of houses. To disclose all illegal additions, shoddy construction, murders, and ghosts. And to put my clients’ needs befor...
Read more

The #1 Reason to Put Your House on The Market TODAY!

-
Image
The  National Association of Realtors  (NAR) released the results of their latest  Existing Home Sales Report  which revealed that home sales declined 0.6% to a seasonally adjusted annual rate of 5.38 million in June from 5.41 million in May, and are 2.2% below a year ago. Some may look at these numbers and think that now is a bad time to sell their house, but in fact, the opposite is true. The national slowdown in sales is directly tied to a lack of inventory available for the buyers who are  out in the market  looking for their dream homes! In fact, the inventory of homes for sale had fallen year-over-year for 36 consecutive months before posting a modest 0.5% gain last month and has had an upward impact on home prices. NAR’s  Chief Economist  Lawrence Yun had this to say, “It’s important to note that despite the modest year-over-year rise in inventory, the current level is far from what’s needed to satisfy demand levels. Furthermo...
Read more

The COST of Your Next Home Will Be LESS Than Your Parents’ Home Was

-
Image
There is no doubt that the price of a home in most regions of the country is greater now than at any time in history. However, when we look at the cost of a home, it is cheaper to own today than it has been historically. The Difference Between PRICE and COST The price of a home is the dollar amount you and the seller agree to at the time of purchase. The cost of a home is the monthly expense you pay for your mortgage payment . To accurately compare costs in different time periods, we must look at home prices, mortgage rates, and wages during each period. Home prices were less expensive years ago, but paychecks were also smaller and mortgage rates were much higher (the average mortgage interest rate in 1988 was 10.34%). The best way to measure the COST of a home is to determine what percentage of income is necessary to buy a home at the time. That would take into account the price of the home, the mortgage interest rate and wages at the time. Zillow just released researc...
Read more