Rates on 30 year mortgages rose to an average of 5.29 percent, the highest weekly average in nearly 3 months.  Interest rates make a HUGE difference in how much home a buyer can afford. 

For example, for an FHA loan with 3.5% down on a $175,000 home, at a 5% rate the principal and interest payment would be $922.42.  At 6%, the P&I payment goes up $1030.21.  That's an 11.6% increase in the monthly payment! 

In other words, you can buy more house for the same payment right now!  The increase in rates plays a much bigger role in affordability than a slight drop in prices. 

If you're thinking of buying, DON'T WAIT ANY LONGER!

Best Regards, Melissa Tolson

Landry Team Buyer's Specialist