The Magic of
A frequent topic of this blog is current interest rates and the impact on your, the buyer's, house payment. The frequency is due to the changing environment of rates never the same day to day.
But more importantly, to keep the buyer and seller aware of the true magic of low interest rates on house payments.
As can be seen again in the three charts below, that regardless of your purchase price, today's lower rates allow the buyer to buy and a seller to sell a substantially higer price home. The value is amazing.
For only an increase of 1.5% in interest rate, every price range can make the same payment for a home 10% lower mortgage amount or house value. No matter how you put it, having to buy a less expensive home ($20,000 to $60,000 less) than you could today because interest rates rise will hurt. With home prices rising and expected to rise over the next five years, it will be double whammy of buying less house for the same payment.
Don't let it happen to you!!! If your situation or your family situation requires more or less space, or a move to a different city or state, now is the time to act while rates and home prices are lower than they will be in the future.