PURCHASING POWER
AFFECTS BOTH
BUYERS & SELLERS!
Recent history has provided us with interest rates hitting record
lows, but according to Freddie Mac and Fannie Mae, the writing
is on the wall with recent rate increases! Th e Mortgage Bankers
Association also predicts that they will continue to rise over the
next four quarters. Of course, everyone understands that lower
interest rates mean lower monthly payments, but what is oft en
overlooked, is that every increase in rate decreases purchasing
power!
LIZ BURROW®
®
301.788.6076
LakeLinganore.com
SELLING? BUYING? BUILDING?
Love Where You Live
Lak eHomesByLiz@comcast.net
What this means for buyers is the ability to aff ord less house.
For sellers, the impact is that the pool of buyers in their price
range becomes smaller and smaller. A .75% rate increase could
reduce buying power by as much as 10% as indicated below in
this chart courtesy of ‘Keeping Current Matters’.
Buyers who are pre-approved are not necessarily assured that
they will be able to purchase in the price range in which they
initially begin, so keep a close eye on interest rates. Taking too
long to make a decision, or hesitating over a few thousand
dollars at the purchase price, could cost you more than you
think.
Beautiful Custom Homes from $400s
240.309.6000
240.309.6000
On behalf of Boy Scout
Cub Pack 628:
Th ank you to all those who
supported the pack with their
donations towards the “Scouting
for Food” service project in
November.
Approximately 4,800lbs of food was donated the Urbana Food
Bank! Also, thank you to Beachy Companies for allowing the
pack to utilize their trailer to transport donations.
LakeTalk January 2018 21