Smorgasbord…

So what is the impact of these increasing rates? Obviously, larger mortgage payments will be the result; however, that is often difficult for us to put in perspective. Realizing that most of today’s buyers are cash strapped and are financing as much of the home’s purchase prices as possible (generally 96.5%), the impact of rising mortgage rates becomes more obvious with the following observation: Every 1% that interest rates rise is equivalent to a 20% increase in the price of a home!

So how does it impact me … If you’re a seller, you will have fewer prospects for your home, if you’re a buyer, you will get less home for your dollar (if the amount of home you’re buying is based on what you can afford as a monthly mortgage payment)!

Housing is more affordable today than it has been in many years and is more affordable than it’s going to be … Don’t miss this market!

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