Home Affordability vs Interest Rates

Home Affordability vs Interest Rates. Todd and Oana go over how purchasing power changes as interest rates change. Another factor of home affordability is comparing purchase price to the monthly payment. Although most homes are purchased with a mortgage, even homes that have the same loan amount have different monthly payment amounts since interest rates greatly affect payment amounts.

Another aspect is using the same dollar amount to purchase, depending on the interest rate there is a wider range of home prices because a $1,500 monthly payment can buy a $375,000 house with a 2.5% interest rate while a 3.5% interest rate only buys a $322,000 house. This would equate to 6,600 homes that are out of reach of a typical buyer in Las Vegas in the last year since that’s a large part of the market.

Here is the channel for Robert Adams who asked us to do the video.

Robert Adams Real Estate    / @adamsfamilyres3432  

If you have questions contact us at broker@nvrs.com or call 702-285-4207

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