DON’T WAIT MOVE UP TO THE HOME YOU ALWAYS WANTED
Now that the housing market has stabilized, more and more homeowners areconsidering moving up to the home they have always dreamed of. Prices are stillbelow those of a few years ago and interest rates are still around 4%.
Sellers should realize that waiting to make the move while mortgage ratesare increasing probably doesn’t make sense. As rates increase, the price of thehouse you can afford will decrease if you plan to stay within a certain budgetfor your monthly housing costs.
The chart details this point.
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will increase by at least half a point by this time next year. Act now to get the most house for your hard