As mortgage rates rise, purchase power falls.
A 1% increase in interest rates will drop purchasing power by approximately 10.75%
What does this mean you may ask? A home buyer who purchases a $267,750 home in the future with an interest rate of 5.5% on a 30 year note, with a payment of $1,444.00, could actually buy a $300,000 home today with an interest rate of 4.5% with the same payment of $1,444.00. We are talking $32,250 in Purchasing Power! That’s huge! What can the buyer purchase? More home, a pool, extra rooms, upgrades, you name it.
So, let us help your client keep their Purchasing Power, finance now not later.