How Would a 1.0% Interest Rate Increase Affect Your Buying Power? How about 2.0%?

 

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

Posted on April 1, 2013 at 10:04 pm
Dave Sutton | Category: Uncategorized

Leave a Reply

Your email address will not be published. Required fields are marked *