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The Impact of Interest Rates on Housing

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Real Estate Agent with C21 M&M and Associates 01301485

The Impact of Interest Rates on Housing

When we think of housing affordability, we tend to focus primarily on housing prices. However, interest rates play a huge role in determining how much a buyer can afford. Consider a home that is worth $300,000. Suppose you put 20% of the value of the home as a down payment. The approximate monthly payment on a 30 year fixed mortgage at 7% is $1,600. The same house financed at 6% would result in a payment of approximately $1,400. That $200 monthly difference is the equivalent of $30,000 in housing prices.

Interest rates are still at historically low levels. This is good news for you in two ways. First, buyers for your home will be able to afford more which increases the demand for your home. Second, you'll be able to afford more when you move up to a larger home. Experts predict that interest rates will start to rise as the economy improves. Don't miss this window of opportunity to take advantage of historically low interest rates.

For more information on how current interest rates can benefit you, call me for a private consultation.

Your Realtor,

David Morrell
Direct:
Mobile: (831) 239-1255
Fax: (831) 844-2313
E-mail: david@davidmorrellsc.com
http://www.davidmorrellsc.com
01301485

 

 

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