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Don’t Wait! Move Up To Your Dream Home Now!

Don’t Wait! Move Up To Your Dream Home Now!

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows.

Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs. 

Here is a chart detailing this point:

Don’t Wait! Move Up To Your Dream Home Now! | Keeping Current Matters

According to Freddie Mac, the current 30-year fixed rate is currently around 3.75%. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, by $10,000).

Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year.

Act now to get the most house for your hard-earned money.


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2 replies
  1. Jack Ingold
    Jack Ingold says:

    This is a little confusing. Is the base 400,000? Or does the bottom line reflect that the down payment is in the number–360,000 @ 10% down require $40,000 down for the $400,000.

    Reply
    • The KCM Crew
      The KCM Crew says:

      Hi Jack,

      The bottom line is the amount of money that would need to be mortgaged in order for the monthly payment of principal and interest to stay in the same range. So if your budget your monthly mortgage payment for a home was around $1,800 a month and the interest rate increased from 3.75 to 4.00 the buyer’s purchasing power would go down by $10,000 to stay in the same budgeted mortgage payment.

      Hope that helps! Thank you for reaching out!

      Reply

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