Let’s face it,  higher interest rates are in our future – heck, they can’t go much lower!

What’s the effect on buying power?

As the interest rate is increased, here are the corresponding loan amounts that get you the same monthly payment, approximately:

$417,000 @ 5.50% = $2,367.68

$375,000 @ 6.50% = $2,370.26  (10% reduction in buying power from today)

$338,000 @ 7.50% = $2,363.35  (20% reduction)

$308,000 @ 8.50% = $2,368.25  (26% reduction)

$282,000 @ 9.50% = $2,371.21  (32% reduction)

Rising interest rates will hinder the benefits of lower prices – but you save on property taxes!

Do you think it’s not possible in our lifetime? 

I couldn’t wait to get into the business in 1984, because rates had just come down to 13%!