Interest Rates and Buying Power

With interest rates heading upwards as of late, buyers may be wondering just how much of a difference a slight increase can make? And sellers may be wondering why they need to be concerned as they may be in a seller position only. However, both buyers and sellers might be surprised!
Below is a table which illustrates the corresponding monthly payment for a home purchased at the national median home price as of May. The 3.35% interest rate was when interest rates hit their lowest point in December of this past year.
  
National May median home price: $208,000*   $733 (3.35%),    $794 (4%),   $893 (5%) ,  $997 (6%)
The above assumes a 20% down payment with principle and interest on a 30 year fixed rate mortgage.

Sellers also need to keep their eye on rising interest rates as the buyer pool can shrink as interest rates rise.
If you think you will be ready to make a move soon, give me a call. My lending team can provide you with scenarios based on interest rates now and what may come in the future with a variety of interest rates in place so you can make the best choice for your situation. Please give me a call at 206-370-0043.

Source: http://www.realtor.org/news-releases/2013/06/existing-home-sales-rise-in-may-with-strong-price-increases