According to Freddie Mac’s Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage have hovered around 4% all year and are still near record lows. 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 to the right shows the 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 Fall 2018. Act now to get the most house for your hard-earned money.
Act now to get the most house for your hard-earned money. Today’s Low Interest Rates provide an opportunity for many home buyers to afford to more. Increase Your Purchasing Power
Tony Clark Realtors believes everyone should feel confident when buying and selling a home. We believe that everyone deserves exceptional service and honest guidance thru the changing real estate market. Since 1976, we are the Owensboro Kentucky market expert. The Tony Clark Team are available and ready to be your trusted real estate adviser.
Tony Clark Realtors | 2934 Frederica Street Owensboro, Kentucky | (270) 683-SOLD