Many homebuyers assume that rising mortgage rates cause lower home prices, when in fact there is no direct relationship between home prices and interest rates, according to the VP of Applied Economic and Housing Research for Fannie Mae. Increasing rates are a sign that the economy is doing well and incomes are rising. As a result, people can afford more and take out larger mortgages.
Realty Austin is here to clear up some confusion and help you understand the facts about rising rates. After all, owning is 35% cheaper than renting.
Myth: Interest rates don’t affect purchasing power
Fact: Interest rates are projected to increase to 5% in Q4 of 2015.*
The lower your interest rate, the higher your purchasing power. Your purchasing power…