My Ocotillo Home
  • For Sale
    • Search Form
    • Featured Listings
    • Office Properties
    • Coming Soon!
    • Vacant Land
    • New Construction
    • Pre-Market Homes!
    • Listing Alerts
    • Build a New Home
    • Howell’s Best Values
  • Selling
    • Free Home Valuation
    • Thinking of Selling?
    • Don’t Go It Alone!
    • What’s Your Home Worth
    • Pre-Marketing Your Home
    • Tips for a Quick Sale
    • 10 Selling Tips
    • Staged To Sell
    • Costly Selling Mistakes
    • Your Situation Special?
    • Are You Under Water
    • Foreclosure Information
    • Seller Concessions
    • Getting Ready to Move
    • The Successful Move
  • Buying
    • Winter Incentive
    • Steps to Buying
    • How Much Can You Afford?
    • Buying Tips
    • Build a New Home
    • How Important Is Location?
    • Finding the Right Home
    • Loan Pre-Qualification
    • Mortgage
    • Property Tax Estimator
    • Buy or Rent?
    • Lease Options
    • Interior Zoning
    • Inspection: Worth The Cost!
    • Moving Tips
    • Walking Scores
    • Glossary of Terms
  • Mortgage
    • How Much Can You Afford?
    • Mort-calc
    • Loan Pre-Qualification
    • Mobile App
    • Mort-calc
    • Property Tax Estimator
  • Market Area
    • Brighton
  • Blog
  • Videos
  • About Us
    • Client Loyalty Program
    • Local Expertise
    • Livingston Home Pros
    • Office Locations
  • Promos
    • Client Loyalty Program
    • Winter Incentive
    • Lower Commission & Free Home Warranty
    • Free Home Valuation
    • Client Referrals
    • Privacy Policy
  • Contact
    • Office Locations
    • Privacy Policy
Home » Buying a Home » Interest Rates Affect Buying Power
May22 0

Interest Rates Affect Buying Power

Posted by Sam in Buying a Home, Featured Property, Local Experts, Mortgage Info, Real Estate

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, 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 to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping 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. #HomeBuyingPower #InterestRates #GerardiGroup
Courtesy of Keeping Current Matters

Recent Posts

  • Hello world!
  • 4 Good Reasons to Consider Selling your Home
  • 2020 Air Conditioning Freon Ban
  • COVID-19 & The Return to Real Estate
  • Selling? Skip Remodelling

Categories

  • Buying a Home
  • Featured Property
  • Local Experts
  • Mortgage Info
  • New Construction
  • Pre-Market Opportunities
  • Real Estate
  • Retirement
  • Selling a Home
  • Short Sale & Foreclosure
  • Uncategorized

Archives

  • January 2021
  • June 2020
  • May 2020
  • December 2019
  • November 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • September 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • April 2017
  • February 2017
  • January 2017
  • December 2015
  • February 2015
  • December 2014
  • September 2014
  • August 2014
  • March 2014

© 2011 My Ocotillo Home | Designed by Elegant Themes | Powered by WordPress