We are hearing about another plan to stimulate the market and the industry...this time $500,000,000,000, yes that's billion. This plan will hopefully lower the interest rate again so that more buyers can afford to purchase the overflow of available homes currently on the market.
With every one percent of change in the mortgage interest rate, reflects as a $9,000 buying power for the consumer. That means that if a buyer is qualified to purchase a home at $200,000 and the interest rate changes, up or down, the purchaser's ability to afford to purchase a home changes.
If rates go down by one percent, this buyer can now afford to pay $209,000 for a home. Thus, if the interest rate goes up by one percent, now that same buyer can afford a home for $9,000 less, which would be $191,000.
If you have any questions about your ability to afford a home you can contact me. I would be happy to sit down with you to and go over the necessary steps necessary to start your home buying process.
Antoinette "Toni" Murphy, GRI, REALTOR 609-412-5703
RE/MAX Atlantic
Comments(0)