Interest Rates Impact Buying Power – Friday Facts!

Interest Rates Impact Buying Power; Home Size a Big Consideration, New England Loves Decks! Friday Facts September 6, 2013!


Did you know that a 1% interest rate increase has a 10% impact on a buyer’s purchasing power?  KCM Blog gives an example that a consumer wanting to keep a mortgage payment at $2,000 would need a mortgage no higher than $400,000 at today’s rates.  If rates increase by 1%, the mortgage would drop to $360,000 (10%).



The U.S. housing recovery loses a step as pending existing home sales fell nationwide for the second straight month in July.  This could be a sign that rising mortgage rates are impacting sales.  Losses were across the country, but concentrated in the Northeast and the West.



A recent study showed that in 70% of adults with children, the #1 consideration in home search is home size, followed by crime rate, school district and length of commute.  Only 33% of adults with children and 29% of adults without children cited proximity to family as an important criteria.



Where you live helps determine your preference in outdoor living space.  Decks are most common on new homes in the Northeast appearing on 72% of all new homes built in 2012.  Patios are least common in the Northeast, but most common in the West South Central portion of the country.  Porches are most common in the East South Central region (Alabama, Kentucky, Mississippi and Tennessee) where 90% of new homes are built with porches.


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