Mortgage Rates Plunge: What Does Your Budget Look Like Now?
Mortgage rates are constantly fluctuating, and those changes have a significant impact on homebuyers’ purchasing power. In just three short months, we’ve seen a noticeable difference. Let’s break it down and show you how much home you could afford today with a $1,500 monthly mortgage payment, compared to three months ago. What does your budget look like now?
3 Months Ago vs. Now
Three Months Ago:
- Interest Rate: 7.17%
- APR: 7.65%
- Buying Power: $202,000
- Monthly Payment: $1,500
- Down Payment: 10%
Now:
- Interest Rate: 6.17%
- APR: 6.85%
- Buying Power: $223,000
- Monthly Payment: $1,500
- Down Payment: 10%
As of today, mortgage rates have dropped from 7.17% to 6.17%, and this seemingly small shift has increased homebuyers’ purchasing power from $202,000 to $223,000. By locking in a lower interest rate, you can now afford $21,000 more home for the same monthly payment!
What’s Behind the Change?
Mortgage rates fluctuate due to a variety of factors, including the Federal Reserve’s decisions, inflation, and overall economic conditions. Over the past few months, rates have ticked downward, giving homebuyers more purchasing power. This is a great time for buyers who are looking to maximize their budget.
Interest Rates and Buying Power
To illustrate how much mortgage rates affect buying power, let’s take a closer look at the impact of a 1% difference in interest rates:
- At 7.17%, a $1,500 monthly payment would afford you a home priced at $202,000.
- At 6.17%, that same payment now affords you a home priced at $223,000.
As you can see, just a 1% drop in interest rates can give you an extra $21,000 to work with when shopping for a home!
Looking Ahead
Mortgage rates are always on the move, so it’s essential to stay informed. If you’ve been on the fence about buying a home, now might be the right time to act and take advantage of the increased purchasing power lower rates can provide.
What does your budget look like now?
Data from mortgagenewsdaily.com/mortgage-rates/mnd
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Are you or someone you know considering a home purchase? Don’t hesitate to call or text me, Michael Archbold, at 260-579-1516 and I will connect you with the best mortgage professionals in the business who can get you your score, discuss ways to improve it if necessary, and put you on the path to home ownership. Click here to read more about our Buyer Services. Click here to browse listings NOW! Looking to sell your home? Call today to set up an appointment to begin developing your customized marketing plan. Click here to read more about our Seller Services.
Hoosier Home Listings by RE/MAX Results, is a full service real estate Web site serving Northeast Indiana. We assist residential and commercial clients in locating, buying, and selling real property in the State of Indiana including but not limited to the counties of Allen, Huntington, Wells, Adams, Whitley, Wabash, Kosciusko, Noble, Dekalb, Lagrange, Steuben and cities including Fort Wayne, Decatur, Bluffton, Huntington, Warsaw, Columbia City, Butler, and Angola. RE/MAX Results is an Equal Housing Opportunity company.
Hoosier Home Listings… Mortgage Rates Plunge: What Does Your Budget Look Like Now?…
… brought to you by Michael Archbold, Hoosier Home Listings, and RE/MAX Results.
The consummate professional, Michael Archbold (Associate Broker, REALTOR, ePro) brings a diversified background to the world of real estate. Born and raised in Fort Wayne, Mike graduated Wayne High School in 1992. He received bachelors degrees in Accounting in 1997 from Indiana University and Information Technology in 2005 from Indiana Wesleyan University. Mike comes to RE/MAX with more than 20 years of experience in sales and accounting. He began his career in real estate in 2000 as an investor.
