Virginia Real Estate: How Interest Rates Impact Home Buyers

How will the 2017 marketplace impact homebuyers? Interest rate increases are bound to happen, which will directly impact your ability to purchase a home.

What is happening out there in the marketplace and how does it relate to you as a homebuyer?

Right now, the Fed is committed to raising interest rates in 2017. Rates will go up anywhere from 0.5% to 0.75%. We can no longer keep interest rates at the historic lows that we’ve seen the last couple of years.

Did you know that for every 0.25% increase in interest rates, buyers lose $25,000 of buying power? That’s a lot of money. So, if rates go up by either 0.5% or 0.75% this year, that could affect your buying power by $50,000 to $75,000 in terms of the total mortgage amount.

“INTEREST RATE INCREASES NEGATIVELY AFFECT YOUR HOME BUYING POWER.”

What does that mean for you? Ultimately, it could mean the difference between buying a single-family home and buying a townhouse. Interest rate increases can negatively impact your ability to buy a home.

So, if you are a buyer in today’s market, what are you waiting for? Now is the time to make a move so that you can take advantage of these historically low interest rates. I don’t believe that we will ever see these kinds of rates again in our lifetimes.

If you have any other questions about buying a home or about real estate in general, give us a call or send us an email. We would be happy to help you!

Want to sell your home?
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Wicker Homes Group at Keller Williams
 46169 Westlake Dr #200
 Potomac Falls, VA 20165
 info@wickerhomes.com
 571-210-4997

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