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Replies (2)
- Dan, "the_country_hick"
- Contributions:4695
Rising interest rates are an important aspect of my house buying plans. I know as interest rates rise buying power decreases. I sacrificed for many many years to build up a nice nest egg. I am waiting for genuinely high interest rates to arrive before buying. Those higher rates will reduce house prices.
When interest rates go from 5% to 7% 23.7% of buying power is removed. That means a house payment that buys a $200,000 house now can only buy around a $153,000 house. Witth incomes unlikely to go up much if at all cash waits.
p.s. interest rates below 5% are still exceptionally low.
When interest rates go from 5% to 7% 23.7% of buying power is removed. That means a house payment that buys a $200,000 house now can only buy around a $153,000 house. Witth incomes unlikely to go up much if at all cash waits.
p.s. interest rates below 5% are still exceptionally low.
- Eugene Hacker, "RiverLakeRE"
- Contributions:165
In many areas prices will not fall as interest rates rise. The sad truth is that most likely outcome is that affordabilty will fall from its current record high.
Hey borrowers and homeowners -- how are rising interest rates affecting you?
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