January 13th, 2015 at 10:00 am

home buying

Author: Team Foote (Joshua & Jessica Foote)

Our baby had a well-check appointment last week, so the family and I were trying to guess how much she would weigh. She’s getting visibly bigger almost every day so, of course, we were all guessing a few pounds above her weight from her last appointment.

None of us (well … except for the 4-year-old who guessed she would weigh 3 pounds) predicted a lower weight because we know that healthy babies grow. Our newest addition seems to be a healthy baby so we expect her to continue getting bigger and stronger.

But let’s talk real estate. Will you be bigger and stronger this year when it comes to your real estate buying power? If interest rate predictions are correct, unfortunately, you won’t be! If interest rates go up to the predicted level, your buying power could go down as much as 16 percent.

To put numbers to that, if you were able to purchase a $312,500 home right now, next year you would be able to buy a $269,594 home. Practically speaking, waiting another year might mean being able to afford one less bedroom or buying a house with a significantly smaller backyard.

If you were thinking of making a move in the future, let’s talk goals and numbers to make sure that your dream home doesn’t move out of your price range next year.


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