What is happening out there in the marketplace and how does it relate to you as a homebuyer?
Right now, the Fed is committed to raising interest rates in 2017. Rates will go up anywhere from 0.5% to 0.75%. We can no longer keep interest rates at the historic lows that we’ve seen the last couple of years.
Did you know that for every 0.25% increase in interest rates, buyers lose $25,000 of buying power? That’s a lot of money. So, if rates go up by either 0.5% or 0.75% this year, that could affect your buying power by $50,000 to $75,000 in terms of the total mortgage amount.
What does that mean for you? Ultimately, it could mean the difference between buying a single-family home and buying a townhouse. Interest rate increases can negatively impact your ability to buy a home.
So, if you are a buyer in today’s market, what are you waiting for? Now is the time to make a move so that you can take advantage of these historically low interest rates. I don’t believe that we will ever see these kinds of rates again in our lifetimes.
If you have any other questions about buying a home or about real estate in general, give us a call or send us an email. We would be happy to help you!