Time to Buy Now with Shirley! Raise in Interest Rates Affect the Cost of Housing

Share

Since the election, rates have started going up and it will have a direct effect on the cost of housing. There is a rule of thumb that a ½% change in interest is approximately equal to 5% change in price. 14439217-250.jpg

As the interest rates go up, it will cost you more to live in the very same home or to keep the payment the same, you’ll have to buy a lower priced home.

Before rates rise too much may be the best time to buy a home whether you’re going to use it for your principal residence or a rental property. Low interest rates and lower prices make housing more affordable.

interest affects price.png

Leave a Reply

Your email address will not be published.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