There are any number of reasons that a realtor will give you to buy a home now. And looking back over the past year, if you had listened, your home could be worth up to 10% more than you paid for it last spring.
This spring things aren’t much different, except mortgage interest rates have never been so low.
There are now whispers about the possibility of interest rates going up. And quite honestly, there is no where else for them to go. When that happens affordability comes into question.
The following table shows you how a 1% increase in interest rates will dramatically change your monthly costs, or decrease the value of the house you can buy.
Interest rates will be going up. Will you be ready?