While the median price of a new home has increased by 70 percent since 1989, mortgage rates have dropped by more than half, going from 10% to less than 5% today. The result of rock-bottom interest rates is the monthly mortgage payment on a median priced home has increased by a mere $4 since 1989. And unless you’re paying cash, your monthly payment is a far more relevant number than your home’s actual purchase price.
Bottom line: If you’re thinking about buying a home, please consider that a slight drop in the price of a house will have far less impact on your monthly payment than even a slight rise in the interest rates. Feel free to contact me to walk through the numbers to see how they can work for you. Also feel free to use our complimentary mortgage calculator.
Material based on the kw Blog at http://blog.kw.com/2011/05/02/do-your-clients-get-it/#more-1986