👨‍💼How Rising Mortgage Rates Affect Affordability

Good morning Brian. If a buyer is so close to the line as rates rise a half point, maybe they are really over the line and should rethink the price range. Enjoy your day.

Brian, some buyers are very worried about the rates, and also what could happen in the upcoming months.

Good morning Brian,

Excellent article! Buyers do always want more than they can afford..only human nature. It's important for buyers to understand their buying power and stay within their comfort zone. Who wants to be married to a house payment! LOL!

Good Friday morning, Brian.

Have a great day and a very special Memorial Day weekend.

Hello Brian,  buyers need to remember that what goes up will come down.  Lots of people refi every 3 to 4 years.

Years ago when I purchased my first house during the highest mortgage rates of 18% (I was able to secure 13.8% as a first time home buyer through the State of IN), my parents advise me your monthly rent (payment) should not exceed one week's wages. My mortgage payment was just a little over one week and I had saved for the closing costs as well as a little money down.

Today people seem to have higher expectations and lower budgets. I wonder if all these home improvement shows, the general high expectations in our culture have much to do with the poor budgeting by many buyers. Just a thought. A very good article and common sense insight.

Hi Brian- it's something that first time buyers may have a hard time understanding that the price of their home and their monthly payments will be affected by mortgage rates. And to Leanne Smith's point, some have grown up in the gotta have it now period. It's hard for them to see that discipline and budgeting are also needed. 

Brian as interest rates go up, mortgage payments go up, which means many Buyers will no longer be able to qualify for a home in the price range they want to be in.

Many buyers in my area are feeling the pressure of both inflation and increasing mortgage rates Brian 🤨

Brian England - now is the time for buyers to listen and appreciate dedicated REALTORS and BROKERS who can truly guide and assist in the buying and selling of real estate. Buyers and sellers would be wise to contact you.