Real Estate News

 

Impact of Interest Rates

 
If the price of a property is currently $500,000 and a buyer plans to put 10% (or $50,000) down and rates are currently 5%, their monthly payment on a $450,000 mortgage would be $2,415.70. If the rates go up to 6% the buyer would only be able to pay $452,900 with the same $50,000 down to keep the same payment. This is a $47,100 reduction in what the buyer can afford and will have an impact on the purchase price of future sales.