Buyer Be Aware: Rates Can Impact Buying Power

by: Natalie Selsor

Mortgage interest rates have been historically low for many years. What seem like high rates today would have been a dream for homebuyers in past decades. That said, rates are going up, and it's unknown how much they will continue to rise. Don't despair, but it's important to understand that higher rates can mean smaller budgets. See the chart for a visual depiction of how interest rates can impact buying power when the monthly mortgage amount needs to stay the same.

THE TAKEWAY

Rates are still historically low. Make sure you speak with your lender about how increases in interest rates may impact your budget. Your agent & lender will walk you through the process and help you strategize the best plan to move forward and find the right home for you.

*Image from pathpost.com