Mooresville Lake Norman Real Estate Get Inside The Lake Norman Real Estate Market

Mooresville Lake Norman Real Estate Get Inside The Lake Norman Real Estate Market

The Impact of Higher Interest Rates


The Impact of Higher Interest Rates | Keeping Current Matters Last week, an article in the Washington Post discussed a new ‘threat’ homebuyers will soon be facing: higher mortgage rates. The article revealed:
“The Mortgage Bankers Association expects that rates on 30-year loans could reach 4.8 percent by the end of next year, topping 5 percent in 2017. Rates haven’t been that high since the recession.”

How can this impact the housing market?

The article reported that recent analysis from Realtor.com found that -
“…as many as 7% of people who applied for a mortgage during the first half of the year would have had trouble qualifying if rates rose by half a percentage point.”
This doesn’t necessarily mean that those buyers negatively impacted by a rate increase would not purchase a home. However, it would mean that they would either need to come up with substantially more cash for a down payment or settle for a lesser priced home. Below is a table showing how a jump in mortgage interest rates would impact the purchasing power of a prospective buyer on a $300,000 home. Buyers Purchasing Power | Keeping Current Matters

Bottom Line

If you are considering purchasing a Lake Norman home (either as a first time buyer or move-up buyer), purchasing sooner rather than later may make more sense from a pure financial outlook. Industry experts say the economic recovery will undoubtedly cause rates to rise and many Mooresville, Charlotte area buyers may no longer enjoy the purchasing power they now have.


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Phone: 704-819-2774
Dated: December 1st 2015
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