Changing Rates Impact

By
Real Estate Agent with Keller Williams Evolution - 447 Boston Street Topsfield, MA 92593-B

One of the first things I did as a first-time buyer was to go to the ebook store and purchase a mortgage interest rate book so I could figure out the monthly principal and interest charges on my potential note. We didn't have the internet as we do now where you can find all that information. But, let that go.

We have watched average mortgage interest rates rise from the mid-2% to the mid-7% range (in Massachusetts). With rising prices and still high demand those rates could push some out of the market. BUT, do not fret. Markets go up and markets go down and interest rates do the same. We purchased our home in 1985 and paid over 13%. That took our breath away but we knew enough that rates would come down and they did. We refinanced every 2% drop in rates and one time we dropped the number of years from 30 -25, and wound up paying the mortgage off in 23 years. 

So, do your best to look at the long game and simply purchase a property you can afford even if it means lowering your sights. Your local Professional Realtor® can help you navigate these changing tide waters.

 

Some Highlights

  • If you’re looking to buy a home, you should know even a small change in mortgage rates has an impact on your purchasing power.
  • These charts show how rates generally affect your monthly payment.
  • The best way to navigate changing mortgage rates and make an informed buying decision is to rely on the expertise of a local real estate professional and mortgage lender.
thank you to KCM for compiling the information in this infographic.

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (10)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Doug Dawes this is very valuable helpful report for the impact of changing mortgages rates.

Jun 07, 2023 08:25 PM
Charles Ross - (785)-819-6944
eXp Realty LLC Salina Group - Salina, KS
Love To Help People

Excellent information.Thank you for sharing. Have a wonderful day and a blessed week.

Jun 08, 2023 01:31 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, I have a buyer that wants to buy an investment property, and watching these high rates, will be even higher for them.

Jun 08, 2023 07:14 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Doug, In the face of fluctuating rates, focus on the bigger picture and consider buying a property within your means, even if it requires adjusting your expectations.

Jun 08, 2023 07:21 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hello John Pusa 

All buyers should be aware of the impact changing rates will have on them

Jun 08, 2023 09:15 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Afternoon Charles Ross - (785)-819-6944 

Thank you for stopping by and reading the post. You have a great week too

Jun 08, 2023 09:17 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Joan Cox 

Higher rates have an impact on everyone. The higher the costs for an investor the higher the rents will be.

Jun 08, 2023 09:18 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 

I like the way you phrased it "In the face of fluctuating rates, focus on the bigger picture and consider buying a property within your means, even if it requires adjusting your expectations"

Jun 08, 2023 09:21 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Doug,

A great insight to show how higher rates affect our buying power. Your chart shows clearly how the rates affect a monthly payment.

Jun 08, 2023 01:30 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Dorie Dillard Austin TX 

I see you've been active in your market. Congratulations. Interest rates impact everyone. 

Jun 08, 2023 02:37 PM