The High Impact Of Low Interest Rates On Your Purchasing Power

Dated: 07/11/2017

Views: 43


The High Impact of Low Interest Rates on Your Purchasing Power



The High Impact of Low Interest Rates on Your Purchasing Power | MyKCM


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 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.



The High Impact of Low Interest Rates on Your Purchasing Power | MyKCM


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.


www.RaulAcuna.com

#RaulAcunaRealtor #TeamRaulAcuna #RemaxTime #RealEstate #InterestRates #Mortgage #HomeBuyers #Buyers #Advice #Tips 

Blog author image

Raul Acuna - CA BRE #01708572

Raul Acuña - Raul has been in the Real Estate Industry since 2005. Raul began working at an REO brokerage before opening his own REO company in 2010. Raul has a business degree from Cal Poly Pomona, ....

Want to Advertise on this Site?

Latest Blog Posts

Are We About To Enter A Buyers Market

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a

Read More

Fall Brings Price Drops For A Quarter Of Homes

Fall Brings Price Drops for a Quarter of HomesShare of homes with price drops reached a record-high in SeptemberSigns continue to point toward a changing market that’s letting homebuyers

Read More

Thinking Of Selling Your Home Why You Need A Pro In Your Corner

With home prices on the rise and buyer demand strong, some sellers may be tempted to try and sell their homes on their own (FSBO) without using the services of a real estate professional.Real estate

Read More

Coming Soon

Coming Soon!! Horsethief CanyonComing soon to the Horsethief Canyon area. This lovely 3 Bed, 2 bath, home with 1,312 sq ft of living space, on a 8,276 sq ft lot. Will be hitting the market by

Read More