Low Interest Rates Have A High Impact On Your Purchasing Power

Dated: 11/28/2017

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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.

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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.

Thinking of buying or selling, get your FREE eGuide below, it will answer many of your questions and likely bring up a few things you didn’t even know you should consider when buying or selling a home.

Free eGuide "Things to Consider When Buying a Home


Free eGuide "Things to Consider When Selling a Home

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Evelyn Suarez

Call/text 561-389-2449
Evelyn Suarez has dedicated her professional life to protecting the best interests of her clients. Buying or selling a home is the largest investment most people will ever....

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