January 2 2019
Purchasing Power and Rates
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 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.
Mortgage interest rates had been on the rise for much of 2018, but they made a welcome reversal at the end of the year. Despite the recent drop, interest rates are projected to reach 5% in 2019.
The chart below shows the impact that rising interest rates.
If you'd like to go over your purchasing options give me a call!