Buying a home is one of the biggest financial decisions that most people make in their lifetime. Interest rates play a major role in determining the affordability of a home, and rising interest rates can have a significant impact on a buyer’s purchasing power. In this article, we will discuss the ways in which rising interest rates impact home buying power and offer tips for buyers to maintain or increase their buying power.
When you borrow money from a lender, you typically have to pay back not only the principal amount borrowed, but also an additional amount called interest. Interest is essentially the cost of borrowing money, and it is calculated as a
Interest rates are a critical factor in the homebuying process as they can significantly impact the affordability of a home. When interest rates are low, mortgage payments are generally more affordable, and buyers can afford more expensive homes. On the other hand, when interest rates are high, mortgage payments become more expensive, and buyers may be priced out of the market or forced to settle for less expensive properties.
Mortgage interest rates are primarily affected by changes in the economy and monetary policies of the central banks in a country. Here are some factors that influence mortgage interest rates