Mortage rates on the way up! Don't wait to buy Janice Roosevelt, Keller Williams, PA & DE - jrosoevelt@kw.com

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Real Estate Agent with Rory Burkhart Team, Keller Williams

Buyers don't wait another day!  Mortgage rates increased from about 5 percent to 5.3 percent in in the last  7 days. And that means less buying power.  For every 1 percentage point increase in mortgage rates a buyer's purchasing power is reduced by  by about 10 percent.

 For example, taking out a 30-year mortgage for $300,000 at a rate of 5 percent will cost you about $1,600 a month, not including taxes and insurance. But the same monthly payment at a rate of 6 percent will only get you a loan of $270,000.

As the economy improves and the Federal government steps out of the arena to help out, rates will continue to rise.  Some preduct 6 percent rates by next year.

For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher state some news reports.


It's all about affordability. For every 1 percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.

jroosevelt@kw.com

 

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Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Absolutely right, Janice.  The projection is that mortgage rates are on the way up, and house prices seem to be stable.  It would definitely seem to be the right time to buy soon.

Apr 08, 2010 03:30 PM #1
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise in NE Philadelphia & Bucks County

Janice..This is wonderful information ..you are so right ..Prices are down and so are interest rates..

Apr 09, 2010 09:37 AM #2
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Janice Roosevelt

OICP ABR, ePRO,Ecobroker
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