What will happen to my ability to buy a home if rates go up?

We all know that higher rates are no good for the home buyer (or the seller for that matter) but do we understand how it really affects the buyer in his/her home search? 

I asked my lender to put together a little scenario...

Let's say our buyer qualifies for a mortgage payment of $1432/month.  At a rate of 4%, they can purchase a home valued at $300K.   Increasing the rate to 5% (all other conditions remain the same) the same buyer can now only afford to spend $267K on their new home.     WHAT??!!  They are essentially paying $1432/month for a $267K home instead of the nicer $300K home.    They have effectively reduced their buying power by $33K with a 1% rate increase.   

This graph shows rate trends for the last 12 months.   If you've been on the fence about buying or selling now or waiting it out, you may miss out altogether.  Call me today and let's formulate a plan.  My cell is 225-571-8667.  

   

We will help you buy your dream home

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Call Cindy Allen at 225-571-8667 for more information on how we get our buyers into homes in 30 days or less!

Buying a home is a big step! Whether you're buying your first home, your dream home, or your tenth investment property, yours will be a big investment. We know how important this is to you, and we have an army of experts to make sure we find the perfect property for your unique circumstances. We know the market and love real estate, and we'll educate you throughout the buying experience.

Finding the perfect property is just one way we can help you with your real estate purchase. As real estate agents, we have ongoing access to experts in every related field from lending to relocation.

Start Your Home Search

SEARCH FOR HOMES WHEREVER YOU ARE

When buying a home, start by making a wish list and setting a budget. We can help you choose a lender to get you pre-approved for a loan, and then you're ready to start house hunting. Search for your dream home from any device on our website. You can even compare walk scores, school ratings, and neighborhood demographics for different listings.

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When you save a search on our site, any new homes matching your wish list criteria will be delivered straight to your inbox the moment they go up for sale.

Save and See Listings

FAVORITE PROPERTIES AND TOUR HOMES

Click the  icon when you find a house you love to save it in your favorites section and let us know you like it. Hit "See This Listing" or reach out to your agent directly to schedule an in-person showing. We're happy to walk you through the home and answer any questions, so you can make an informed decision.