Interest rates for a 30-year fixed rate mortgage are currently at 4.09% according to the latest survey by Freddie Mac.
In comparison to recent history, this rate is still very low.
The interest rate you secure when buying a home impacts your purchasing power, which is the amount of home you can afford to buy for the budget you have available to spend.
The price of the house will decrease as interest rates increase.
This happens if you plan to stay within a certain monthly housing budget.
In the chart above, you will see the impact of rising interest rates with the assumption that you plan to purchase a home within the national median range and you plan to keep your principal and interest payments about $1,100 per month.
The value of the home decreases by 2.5% as interest rate increases by 0.25%.
Mortgage rates will be closer to 5% this time next year according to experts.
Given this information, you need to act now to get the most house for your hard-earned money.
Asking the help of a professional when getting the most house for your hard-earned money is crucial.
At Burgess Group Realty LLC, we help our clients find the best deals in the market. Let’s meet up so we can help you find your dream home for your hard-earned money!
CALL Catherine at 303.506.5669.