What happens to my ability to buy a house if rates continue to rise?

By
Real Estate Agent with Keller Williams Realty Red Stick Partners #SALE 9956330
 
 
We all know that higher rates are no good for the home buyer (or the seller for that matter) but do we understand how it really affects the buyer in his/her home search? 
 
I asked my lender to put together a little scenario...
 
Let's say our buyer qualifies for a mortgage payment of $1432/month.  At a rate of 4%, they can purchase a home valued at $300K.   Increasing the rate to 5% (all other conditions remain the same) the same buyer can now only afford to spend $267K on their new home.     WHAT??!!  They are essentially paying $1432/month for a $267K home instead of the nicer $300K home.    They have effectively reduced their buying power by $33K with a 1% rate increase.   
 
This graph shows rate trends for the last 12 months.   If you've been on the fence about buying or selling now or waiting it out, you may miss out altogether.  Call me today and let's formulate a plan.  My cell is 225-571-8667.  

 
For all a list of all properties available in the Greater Baton Rouge area click below.
   
Posted by

Cindy Allen  
Louisiana Homes And Land Team
Keller Williams Realty Red Stick Partners
Direct (225) 571-8667
eFax 888-242-8165

 

Keller Williams Realty Red Stick Partners
Cindy Allen, Licensed in the State of Louisiana, USA #SALE 9956330

Keller Williams Realty Red Stick Partners
8686 Bluebonnet Blvd. Baton Rouge, LA 70810
225-768-1800 Regulatory Jurisdiction:  Louisiana

Broker and Associates licensed with the Louisiana Real Estate Commission

 

 
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Topic:
Real Estate Market Trends
Location:
Louisiana
Tags:
rising rates
keller williams realtors
cindy allen

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Rainmaker
3,661,612
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

The more you borrow the more it will cost.    First time buyers will not see a huge difference

Jul 13, 2018 06:53 PM #1
Rainmaker
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Kevin Whatley
Universal Home Mortgage - Shreveport, LA
Professional Mortgage Lender

As the federal reserve continues to purchase less mortgage-backed securities and treasury notes, mortgage rates will continue an upward trend.  It's a great time to buy.

 

Jul 19, 2018 03:35 PM #2
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Rainmaker
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Cindy Allen

Proudly serving South Louisiana 225-571-8667
I'd Love to hear your Comments, Questions or Suggestions!
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