No matter if you're a first-time homebuyer, move-up buyer, or an investor, when it comes to buying a home in Alexandria VA, everything revolves around the monthly mortgage payment. We are definitively on the other side of the real estate recovery. In 2013, we saw growth in the housing market, and in 2014 we saw stability. Now, the economy is better. Unemployment rates are remaining low, and the mortgage industry has just reported a substantial increase in the number of mortgage applications for early 2015. The pressure is now off the feds to keep mortgage rates low to spur the economy, so the result will be an increase in interest rates.
Industry experts are forecasting a 4% appreciation in price over 2015, coupled with a jump in interest rates by a full percentage point. Take a look at the different charts below to see how the change in interest rate affects your purchasing power:
Please feel free to bookmark this page! As you can see, when the interest rate changes by as little as 1%, it impacts the monthly mortgage payment. Just multiply the difference in monthly payment by 12 to see what you could be shelling out each year if you don't take advantage of today's rates. These charts don't account for taxes, hazard insurance, or monthly condo/HOA fees, so you can see that in some price points, a 1% change in interest rate can mean the difference between searching for a two bedroom home vs a one bedroom home, or searching for a townhome vs a condo for sale in Alexandria VA.