Did you know that if mortgage rates rise just 1% from today’s levels, the home price must DROP by 11% to keep your mortgage payment the same?
If mortgage rates rise 2%, the home price must drop by 22% to keep your mortgage payment the same.
Fannie Mae is predicting that rates will rise above 5% in 2012.
What are you predicting for future interest rates and home prices?
If you think it’s more likely that the interest rates will rise 1% than home prices dropping 11%, then it’s a good time to buy.
If you’d like to start looking at real estate opportunities, search here.
Credit goes to Lonnie Glessner at America’s Mortgage, LLC for his research and statistics in this article.