Friday, November 19, 2010

Mortgage Rates Back on the Rise

Rates for 30-year fixed mortgages rose to 4.39 percent this week from 4.17 percent a week ago.   Remember just a few weeks ago when the 30 yr mortage rate was around 3.5%???  That is almost a whole point rise in the past few months.  A 1% increase in interest rates lowers your purchasing power by 10%!  Ouch!  This means if you have been waiting to buy a home, you just lost 10% of value.  You now have 10% less to buy a home with.  Example:  last month you could afford a $200,000 home.  Now you can only afford a $190,000 home.   What are you waiting for? 

Posted via email from Scott's posterous

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