Buyers don't wait another day!  Mortgage rates increased from about 5 percent to 5.3 percent in in the last  7 days. And that means less buying power.  For every 1 percentage point increase in mortgage rates a buyer's purchasing power is reduced by  by about 10 percent.

 For example, taking out a 30-year mortgage for $300,000 at a rate of 5 percent will cost you about $1,600 a month, not including taxes and insurance. But the same monthly payment at a rate of 6 percent will only get you a loan of $270,000.

As the economy improves and the Federal government steps out of the arena to help out, rates will continue to rise.  Some preduct 6 percent rates by next year.

For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher state some news reports.


It's all about affordability. For every 1 percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.

jroosevelt@kw.com

 

 
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2 Comments on Mortage rates on the way up! Don't wait to buy Janice Roosevelt, Keller Williams, PA & DE - jrosoevelt@kw.com

APR
08
2010
761,761 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Absolutely right, Janice.  The projection is that mortgage rates are on the way up, and house prices seem to be stable.  It would definitely seem to be the right time to buy soon.
3:30pm • #1
APR
09
2010
630,605 Points 7 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Janice..This is wonderful information ..you are so right ..Prices are down and so are interest rates..
9:37am • #2

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Janice Roosevelt, OICP ABR, ePRO,Ecobroker

Chadds Ford, PA

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Susan Manners Team, Prudential Fox & Roach Realtors

Address: P.O. Box 577, 1598 Baltimore Pike, Chadds Ford, PA, 19317

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