DAILY REAL ESTATE NEWS | THURSDAY, MARCH 12, 2015
Even the slightest movement in mortgage rates can translate into more – or less – purchasing power for your clients.
Read more: Mortgage Rates Drop, Near 2013 Lows
John Burns Real Estate Consulting recently looked at how the fluctuation in rates effects the average consumer. The firm found that a typical family earning $60,000 a year could afford around $1,800 month for the mortgage payment.
In 2000, a 30-year fixed-rate loan, which averaged an 8 percent mortgage rate, would have qualified that family for a $245,000 loan.
But at a 4 percent mortgage rate – which current rates are averaging – that same family can qualify for a $377,000 loan.
"In other words, each 1 percent drop in interest rates in the last 15 years has allowed home sellers to raise the price 12 percent," according to Jon Burns Real Estate Consulting’s analysis.
Source: "How Tiny Mortgage Rate Moves Can Buy You a Lot," CNBC (March 10, 2015)
An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional"
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional"
Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373
501 W Redlands Blvd
Redlands CA, 92373
CalBre 01435824
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