Impact of Anticipated Interest Rate Fluctuations This YearThe amount of your recurring mortgage payments are a reflection of the interest rate. A rise in interest rates mean that you will get less money and/or pay a lot more for the same house. Even a minor increase can result in a difference. If you are trying to purchase a home at the higher end of the price range, a slight change might really affect you.
Here is an example of how purchase maxes might alter with interest rates. This assumes a fixed down payment percentage and keeping the mortgage payment unchanged.
|Interest Rate||Maximum Price|