According to a recent Freddie Mac Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.92%, which is still near record lows in comparison to recent history!
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows what impact rising interest rates would have if you planned to purchase a home in the $360-$400,000 range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.
THE HOME YOU CAN AFFORD
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, $10,000). Experts predict that mortgage rates may be closer to 5% by this time next year.
At The Lemoine Team, we work hard to help you make the most of your home purchase. Whether it’s a home in the $200,000 range or a home over $400,000. Helping you get the most home you can afford is one of our goals. That’s why we work with one of the best mortgage professionals in town who helps our clients.
If you’re looking to buy a home in North Atlanta, we’re here to help. Search homes for sale in Duluth, Suwanee, Alpharetta, Roswell, Cumming, and any other home in the North Atlanta suburbs. Go to LemoineTeam.com to search.