Interest Rates Affect a Buyer’s Purchasing Power

Interest Rates Affect a Buyer’s Purchasing Power

Interest rates play a huge part in the home buying process. Earlier this month, Freddie Mac reported that mortgage lenders were offering a 30-year fixed home loan to qualified borrowers at an average of 4.23%. While this figure is down 2% from Q4 of 2013, economists are predicting that the average mortgage rate could rise to 5% by the end of Q4 of this year.  

New Fed Reserve chief Janet Yellen is expected to continue buying blocks of mortgage-backed securities. However, the Fed’s bond-buying decrease could push higher rates throughout the year. 

What does that mean? Slight increases in rates can make a significant difference in determining your purchasing power (how much you can afford).  Below we’ve also outlined a few scenarios on what your monthly payment could be at the varying interest rates projected in 2014.  

If you are interested in moving to the area, Minteer Team is glad to share a list of client recommended lenders to get you started.

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The Minteer Team has a passion for delivering top quality service and helping clients find their dream home. We’ve been helping clients for over thirty years! Is someone you know also wanting to sell their home? Or maybe you are finally ready to buy? Give us a call! Our highly qualified agents are waiting to help!