Interest rates have climbed 1/4 of a point since Mid September. Did you know a quarter point increase reduces someones buying power by about 3%? That may not sound like a large percentage, but if your are purchasing an average home in our market at just over $300 thousand that is a $9,000 reduction in buying power. Now, consider that rates are expected to steadily climb throughout next year causing a further reduction in buying power.
If I am thinking about buying a home in 2022, this is information I would like to know. To help we have created a chart showing how buying power changes at different price points as interest rates climb. We recommend sharing this information now. This will allow potential buyers to make the best decision on when to enter the market. Your advice will help them maximize their buying power, a service they will not soon forget, hopefully they will tell a few others about it too. Keep elevating our industry.
Watch Video: https://youtu.be/hzsVStSmWsQ
Download: Buying Power is Slipping
David Veldkamp - (616) 460-6123 | Daveveldkamp@remax.net
Owner, RE/MAX GR