According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage currently reside at 3.96%, near record lows in comparison to recent history--good news for your New Jersey home purchasing power!
Purchasing Power: Activate!
The interest rate you secure when buying a New Jersey home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the New Jersey house you can afford decreases if you plan to stay within a certain monthly housing budget.
The chart below shows the impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.
With each quarter of a percent increase in interest rate, the value of the New Jersey home you can afford decreases by 2.5%. And, interest rates are predicted to to rise a quarter of percent once or twice before the end of the year. Just a 1/2% increase in rates means you will only qualify for 95% of the house then as compared to the one you could buy today. What are you waiting for? Call Lynn Garafola at Team Nest Builder at 973-222-3777 today!