What is the impact of Higher Interest Rates?

How do rising interest rates impact your ability to buy a home? Learn more about how interest rates are affecting the current real estate market in Palm Beach.

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What is the impact of Higher Interest Rates?

Posted by Lisa Treu on Friday, July 14th, 2017 at 4:58pm.

Interest RatesAre you wondering what the impact is if interest rates go up?  That is a great question and many buyers are asking that very question.  Did you know that a 1% increase in interest impacts your buying power by 10%?  Most buyers are shocked when they hear that.  

What is the impact to you when you are buying?  

Here is a great example:  If you can afford a $400,000 home, if interest rates go up 1%, you could afford 10% less.  So now your buying power is $360,000.  Imagine what happens if rates go up 2%.  Low interest rates have become so normal however they won't stay low forever. Take advantage of the opportunity while it exists.  

So let us help you find your new home while interest rates are still competitive. Click here to browse all homes for sale, just like an agent. 

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