Why Columbia is Rushing to Buy Homes NOW!

The High Impact of Low Interest Rates on Your Purchasing Power

The High Impact of Low Interest Rates on Your Purchasing Power | MyKCM

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.96%, which is still near record lows in comparison to recent history!

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.

The High Impact of Low Interest Rates on Your Purchasing Power | MyKCM

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Act now to get the most house for your hard-earned money.  Executive Construction Homes has houses ready to move into NOW- Start saving money in 2017! Ask about the energy savings all of our homes deliver!

About Columbia, SC

Named for the sprawling “rich land” that supported hearty indigo and cotton plantations for generations, Richland County today is home to a diverse population of more than 390,000 residents.

The County was carved out of the Camden District in 1785 and flourished with rolling farmland as important trade routes were established along the Santee, Congaree and Saluda rivers. In 1786, the state capital was relocated from coastal Charleston to the geographic center of the state, and a new city was born. Once Columbia was established as the state capital and county seat, Richland County’s boundaries were formally incorporated on Dec. 18, 1799. Read More (credits to Richland County Gov Page)
The County was carved out of the Camden District in 1785 and flourished with rolling farmland as important trade routes were established along the Santee, Congaree and Saluda rivers. In 1786, the state capital was relocated from coastal Charleston to the geographic center of the state, and a new city was born. Once Columbia was established as the state capital and county seat, Richland County’s boundaries were formally incorporated on Dec. 18, 1799. Read More (credits to Richland County Gov Page)