Omaha Real Estate

How Historically Low Interest Rates Increase Your Purchasing Power

How Historically Low Interest Rates Increase Your Purchasing Power

How Historically Low Interest Rates Increase Your Purchasing Power | MyKCM

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.47%. Rates have remained at or below 3.5% each of the last 16 weeks, marking a historic low.

The interest rate you secure when buying an Omaha home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments at or about $1,100 a month.

How Historically Low Interest Rates Increase Your Purchasing Power | MyKCM

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5%, (in this example, $6,250). Experts predict that mortgage rates will be closer to 4% by this time next year.

Act now to get the most house for your hard earned money.

How Historically Low Interest Rates Increase Your Purchasing Power
share
How Historically Low Interest Rates Increase Your Purchasing Power According to Freddie Mac’s latest Primary Mortgage Market Survey interest rates for a 30-year fixed rate mortgage are currently at 3. 47%. Rates have remained at or below 3. 5% each… more
The Role Access Plays in Getting Your House SOLD!
share
The Role Access Plays in Getting Your House SOLD! So you’ve decided to sell your house. You’ve hired an Omaha real estate professional to help you with the entire process and they have asked you what level of access you want to provide to… more
3 Questions to Ask Before Buying Your Dream Home
share
3 Questions to Ask Before Buying Your Dream Home If you are debating purchasing an Omaha home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware… more
Have You Put Aside Enough for Closing Costs?
share
Have You Put Aside Enough for Closing Costs? There are many potential homebuyers, and even sellers, who believe that you need at least a 20% down payment in order to buy a home, or move on to their next home. Time after time, we have dispelled… more
NEW LISTING! Omaha Home for Sale in Creighton's 1st
share
BUY THIS HOME & HAVE NO PAYMENTS FOR UP TO 6 MONTHS, CALL 402-676-6700. Discover the classic beauty of this South Omaha home! The kitchen includes updated cabinets, granite countertops with a huge farmer’s sink, stainless steel appliances and… more
Think You Should FSBO? 5 Reasons to Think Again!
share
Think You Should FSBO? 5 Reasons to Think Again! In today’s market, with home prices rising and a lack of inventory, some Omaha homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO)… more
Why We All Need a 'Phil Dunphy' on Our Side
share
Why We All Need a 'Phil Dunphy' on Our Side Whether or not you’ve ever seen an episode of Modern Family or know who Phil Dunphy’s character is, the concept of knowing that you have someone in your corner who is looking out for your best… more
4 Reasons to Buy This Fall
share
4 Reasons to Buy This Fall It’s that time of year; the seasons are changing and with them come thoughts of the upcoming holidays, family get-togethers, and planning for a new year. Those who are on the fence about whether or not now is the right… more
5 Stats That Prove the Real Estate Market Is Getting Stronger
share
5 Stats That Prove the Real Estate Market Is Getting Stronger Whenever there is talk about an improving housing market, some begin to show concern that we may be headed toward another housing bubble that will be followed by a crash similar to the… more
Don’t Underestimate the Importance of an Agent When Selling Your Home
share
Don’t Underestimate the Importance of Using an Agent When Selling Your Home When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles. However, for the vast majority of sellers,… more