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Monday, June 18, 2018

Interest Rate Impact

Interest Rates Jumped to a 7-Year High

Yes – interest rates have moved up but so far, nothing crazy. The experts have an explanation for that and the relationship of gasoline prices to higher interest rates. Have a look at today’s report by clicking on the link just above.

How Current Interest Rates Impact Your Purchasing Power

Again, you are going to need to click through to today’s report. There is a chart showing incremental increases of ¼ of 1% and the impact that has on your buying power. Clearly, there is reason to buy while rates are still on the lower side – or risk getting less house or a higher payment.

One of the biggest mistakes is trying to save more money for a down payment while prices and interest rates are moving up. Typically, it does not work in your favor!

We have an entire page on Purchasing Power. Check it out.

As Mortgage Rates Rise, Will Home Prices Fall?

Lots of good news here. The consensus indicates a strong and healthy economy and favors robust home price appreciation. If there was a war or financial catastrophe, all predictions are off the table. But, realistically, the economic engine of the country is running just fine and increased interested rates will be assimilated.