Interest rates have increased this year. According to many experts, it will likely go up further during 2015. This is important news for home buyers. Interest rates on the rise in 2015 and what home buyers in Advance NC must know is discussed further in this blog.
Why Interest Rates On The Rise In 2015 Are Important
The amount of your recurring payments are a direct result of your interest rate. A rise in interest rates can diminish your approval amount or cause you to spend more each month for the same mortgage amount. Even a minor variation will make a difference. If you are trying to purchase a home at the max of your range, a tiny rate increase may really reshape your options.
Here is an example of how pre-approvals can move with interest rates. This assumes a unchanged down payment percent and keeping the same mortgage payment.
|Interest Rate||Price Limit|
Other Factors to Consider
In addition to interest rates, changes in home values will also alter your buying power. In many regions, property prices have increased steadily for a year or so. Bidding wars and negotiations above asking price are becoming occurring again. Much of this is due to low listing volume and high demand.
What Home Buyers In Advance NC Must Know When Deciding Buying Now or Later
Upward interest rates and home values both negatively impact home buyers. Buyers will realize that they may afford less and less as the trend continues. The condition of homes at a particular price range will degrade too. Keeping this all in mind, there really is little advantage to procrastinating a house.
About This Spring
Spring is normally the most active time of year for real estate. There should be a higher volume of inventory to satisfy the built up demand, but competition will be high too. Buyers choosing to purchase may take advantage of still fairly low interest rates. Continual increases in home values will provide an opportunity to gain equity in a shorter period of time than typical.