Mark Loewenberg PA 561-214-0370: If Rates Continue To Rise How Much (Less) House Can I Afford?

If Rates Continue To Rise How Much (Less) House Can I Afford?

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. 

buyer purchasing power 200

buyer purchasing power 400

buyer purchasing power 600

buyer purchasing power 800

buyer purchasing power 1000000

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

561-214-0370

Broker Associate
Keller Williams REALTOR®

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Comment balloon 12 commentsMark Loewenberg • January 14 2014 09:15AM

Comments

Thanks Mark for this important answer to a key question many folks will have now and into the months to come. i will book mark this post and suggest. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 6 years ago

thank you Robert! this was an excellent reminder of how rates affect purchase affordability.

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) over 6 years ago

thank you Jesse.. this is from the great folks at KCM!

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) over 6 years ago

The moral of this story is RATES rising, prices rising, BUY NOW before your home is out of your budget.  

Posted by Florida Tolbert Team Keller Williams Advantage, Keller Williams Land Luxury Division Specialist (Keller Williams Advantage III Realty in Lake Nona) over 6 years ago

excellent advice Kevin that is right on the money!

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) over 6 years ago

Mark, this is a great post to make public, as rates are expected to climb this year.   Buyers need to know what to expect!

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) over 6 years ago

yes they do Joan, excellent point!

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) over 6 years ago

Great information. The charts really help buyers to understand the effect the rising interest rates will have on how much home they can afford. 

Posted by Denise Hamlin, Broker/Owner, Helping Happy Clients Make Smart Choices (Cardinal Realty ~ 319-400-0268) over 6 years ago

This is really wonderful information for buyers - they need to see the difference interest rates make. 

Posted by Joy Daniels (Joy Daniels Real Estate Group, Ltd.) over 6 years ago

the charts by KCM are incredible at helping buyers "see" how waiting will affect their bottom line.

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) over 6 years ago

Mark, these charts could also be useful to help sellers realize that they may lose a portion of their prospective buyer pool by holding their home off the market as rates threaten to rise.

Posted by Elva Branson-Lee, CDPE - Atlanta Real Estate & Short Sale Agent (Solid Source Realty GA) over 6 years ago

excellent point Elva! charts for all parties to understand the current marketplace.

Posted by Mark Loewenberg, KW 561-214-0370 (KW of the Palm Beaches) over 6 years ago

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