So I know I am preaching to the choir, the federal reserve board has been talking about raising interest rates for over two years. This, the last quarter of 2015, this discussion has only intensified so it is now just a matter of time – it will either be prior to the end of the year or the first part of 2016 when this will happen. So if you are a buyer in the market for a home, how do higher interest rates affect your purchasing power? Well the graphic below is by far the easiest way to understand the simple truth, that as rates begin to increase, your purchasing power will start to decrease:
So my encouragement is that if you are in the market for a home, please do not wait any longer to purchase a home – contact me today for more information. The winter is a great time to be in the market as there is generally more inventory to choose from and less buyers in the market to compete against.