If Rates Continue To Rise How Much (Less) House Can I Afford?
The big question as to whether rates are heading up, they seem to be. By all accounts including the Mortgage Banker's Association estimate rates will be at 5.3% by 1Q 2015 and the National Associtation of Realtors estimates rates will be at 5.4% by 1Q 2015.
The good folks at KCM (Keeping Current Matters) put together the following 5 slides that detail how much home can be bought with the same payment based on the impending rate increases. As you can see a shift of only a point can be as significant as almost a 10% decrease in the purchase price. Add that to the market rising at the same time and waiting to purchase a home or property in a year will give you less bang for your real estate buck.
So is the time to buy now? By all accounts yes while purchasing power is at the greatest.
Questions? Thoughts? Call Mark Loewenberg PA at 561-214-0370 or visit www.ForSaleHomeSearch.com to view a live list of properties currently on the market.
Want to see the whole batch of material that KCM provides each month? Visit them here: http://trykcm.com/a9215
Mark Loewenberg PA
Keller Williams REALTOR®
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