Interest rates have increased by 0.75% since the election and will continue to rise through 2017. What does this mean for you as a homebuyer?
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Interest rates have increased 0.75% since the election. That might not seem like much, but what do rising interest rates mean to you as a homebuyer?
A 1% increase in interest rates on a $300,000 house can mean an extra $200 in your monthly mortgage payment. Not only that, but in order to qualify for that home, your income would need to increase by nearly $600 a month thanks to that rate increase.
When interest rates go up, buying power goes down. You have to make more money to qualify for the same house, and your payments will be larger.
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When interest rates go up, your buying power goes down.
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If you are on the fence about buying a home, now is the time to make your move. Interest rates will continue to rise over the next few years. They are expected to rise twice in 2017, 2018, and 2019. Now is the time to make your move if you want to beat those rate increases.
If you have any other questions about buying a home or about the real estate market in general, give me a call or send me an email. I would be happy to help you!
