Interest
rates are on the rise which could make your buying power go down.
With every 1% rate increase, the typical borrower loses 10.75% purchasing
power.* That means if you could afford a $100,000 home at 4%, you could
potentially lose $10,750 of buying power and now only qualify for a $89,250
house at 5%.
That is
not good news to buyers or sellers today. Sellers, who have been optimistic
recently because of increased demand and some appreciation in home values,
are affected by rising interest rates because it limits buyers choices in which
homes they can afford. Buyers are affected the same but feel the pain
for a much longer time, say 30 years or until they can refinance at some point in the future.
Depending
on who you listen to, rates will go up a little or a lot! But most agree,
upward is the trend for the spring, 2014 season.
If you
need to buy or sell a home, the best window of opportunity may be right now.
Rates are still low enough to make home ownership more attractive than renting
and springtime is the most active season for buying and selling.
Call me
today and let's get started!
Michael
Bradford
770-862-8002
* themortgagereport.com
6/23/2013
