When Mortgage Rates Fall

When mortgage rates fall or decline in the market what does it actually mean to a buyer? The short answer is... it improves a buyer's buying power and strength. Some statistics show that averages are 11% more buying power for 1 percent in loan/mortgage rate decline. For example, you were looking to purchase a home at $375,000 at a 6.75% rate last fall. Now with spring here and the recent decline in interest rates, you can now buy a $417,000 home with the same mortgage payment at the current interest rate of 5.75%. The rate today is good news for many buyers out there as it offers more buying power (approx. $42,000)! Maybe your dream home is within reach!