Today's interest rates are at historically low levels, which increases the buying power of all buyers (except all cash). But what if rates were to increase, say 1.0%? What if it were 2.0%?
How would that affect how much house you could buy? Less, of course, but how much less?
Even a 2.0% increase would leave rates around 5.5% and it wasn't too long ago that any mortgage rate below 6.0% was considered a prime deal.
My office's Windermere Mortgage Branch Manager, Tanya Elder, has provided some examples illustrating what happens to your buying power at different prices as rates increase. Click here