Originally published in Keeping Current Matters – Sellers Guide – Summer 2018
Interest rates for a 30-year fixed rate mortgage have inched up to about 4.5%. This is still
significantly lower than recent history. The interest rate you secure when you buy a home impacts your monthly payment and also your purchasing power. As rates increase, the price of the house you can afford will decrease.
This chart shows the impact rising interest rates have on the value of the home you can afford. With each .25% increase in interest rate, the value of the home you can afford could decrease by
as much as 2.5%
Experts predict that mortgage rates will be over 5% by this time next year.
Act now to get the most house for your hard-earned money.