How Rising Interest Rates Will Impact Affordability

Thinking about waiting for “after the holidays” or “spring season” before considering buying a home?  KW research found that a buyer strategy of “wait and see” for home prices or interest rates drop even more before deciding to buy could be more of a gamble that you’d think.  With interest rates already at historical lows, their findings show that the reality of current market conditions is this…

  • A 1% increase in interest rates is 10 times more likely to happen before a 10% drop in home prices.
  • A 1% increase in interest rates, prices being stable, may increase your monthly payment lowering your affordability.
  • A 10% decrease in home prices may lower your monthly payment but rates must stay the same.
  • The probability of both happening at the same time is ridiculously small, and homeowners would pay approx 15% more in interest over the life of the loan.

The bottom line…”For those who can afford to buy, trade up, or invest, our current market presents a lifetime opportunity.” – Jay Papasan, VP of Publishing and Executive Editor, Keller Williams Realty

Check out Jay’s KW blog post for further details and illustration of the impact on a $250,000 home:

How Rising Interest Rates Will Impact Affordability.

About Susan Johnson Team Charlotte | Lake Norman Real Estate Specialists

Susan Johnson & Associates Real Estate Agents in Charlotte | Lake Norman NC I am native to the area, live, work and play in the area. My children go to school here and I serve my community in this area. I love the region and I think its a great place to live! Together with my team, we have more than 21 years of combined experience in business, marketing, technology and communications, as real estate professionals in Charlotte | Lake Norman, we have also found that the key to providing the very best service is as simple as putting our clients first. This means keeping ourselves accessible, being good listeners as well as good communicators, and responding quickly. We look forward to sharing our expertise and working with you in all of your real estate needs in this region and across the country! Visit my website
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