Interest rates have risen since October. Mortgage experts expect that it will rise even more throughout the year. This is critical information for potential buyers. Expected interest rate changes this year and what Southern NH buyers must know is provided below.
Impact of Expected Interest Rate Changes This Year
Interest rates are used to calculate monthly mortgage payments. Increases in interest rates mean that you may get less money and/or pay much more for the same home. Even a modest change will make a difference. If you are looking for a home at the high end of the range, any rate increase could really affect you.
Here is an illustration of how purchase limits may change with interest rates. This is assuming a particular down payment percentage and keeping the mortgage payment unchanged.
|Interest Rate||Max Price|
Additional Affordability Factors
Other than interest rates, home prices will also change. In most areas, purchase prices have increased progressively. Bidding wars and negotiations above list price are occurring again. A lot of this was created by insufficient home inventory.
What Southern NH Buyers Must Know When Determining Whether to Buy Now or Wait
Increasing interest rates and real estate prices both negatively effect home buyers. Buyers will find that their max price lowers over time. The quality of homes within reach will be less desirable as well. Keeping this in mind, it is best to act now rather than wait.
About This Spring
Spring is typically the busiest season for the housing market. There will be more properties on the market to accommodate the growing demand, but competition will be strong too. Individuals electing to buy can benefit from reasonable interest rates. Expected increases in house values will offer a chance to build equity in a shorter amount of time than typical.