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Tuesday, October 30, 2012

Low rates increase home buying power!

Low rates increase buying power!
When mortgage rates get this low, buyers feel less sting from rising prices and are willing to "extend themselves" a little bit. Purchasing power climbs 11% for every 1 percent drop in rates. That's a significant shift with mortgage rates at all-time lows.

As buyer's, when things are "on sale", like mortgage rates are and like home prices are, we feel we can afford more.  And we can. 

On the flip side, as the housing market continues to recover and we begin to see higher prices, coupled with slowly increasing mortgage rates.

Click here for my blog post Mortgage rates to rise, slowly in 2013 when borrowing ability will decrease on TWO fronts.  In the future we will see:

  • Higher rates and 
  • Higher home prices

Take advantage of a perfect market! Call me to explore your mortgage options.  :)