Rising Interest Rates
Expected Mortgage Rate Changes In 2015 – What Bennington Home Buyers Must Be Aware Of
Mortgage rates have increased this year. According to industry professionals, it is likely to do so even more during the year. This is critical information for prospective buyers. Expected mortgage rate changes in 2015 and what Bennington home buyers must be aware of is discussed further below.
Affect of Expected Mortgage Rate Changes In 2015
The amount of your monthly mortgage payments are a reflection of your mortgage rate. A change in mortgage rates will drop your approval level or make the mortgage payment greater for the same house. Even a small surge can make a difference. If you are looking for a property at the high end of the price range, a slight rate increase will really affect you.
Below is an example of how price limits may fluctuate with mortgage rates. This assumes a fixed down payment percent and keeping the mortgage payment unchanged.
|Mortgage Rate||Price Max|
Other Affordability Factors
In addition to mortgage rates, real estate values will also fluctuate. In most regions, purchase prices have risen consistently for at least a year now. Many areas are getting bidding wars and sale prices above list. A lot of this is a result of inventory not matching demand.
What Bennington Home Buyers Must Be Aware Of When Determining Buying Now or Later
Rising mortgage rates and market values both have a negative impact on buyers. People will find that they may afford a lower and lower price as this continues. The quality of houses at a certain price range will be less desirable as well. With both of these considered, there may be little benefit to delaying purchasing a house.
What is Anticipated This Spring
Spring is historically the most active season for real estate. There will be a higher amount of listings to meet the built up demand, but competition will be high as well. Individuals opting to buy may benefit from reasonable mortgage rates. Additional increases in house values will bring a chance to attain equity in a shorter time frame than usual.