Homes Just Became 10% MORE AFFORDABLE! Interest Rates Plunge
How do mortgage rates affect home affordability?
Interest rates affect home affordability by influencing the cost of borrowing money to purchase a home. When interest rates are low, it can make it more affordable for people to borrow money to buy a home because the cost of borrowing is lower. On the other hand, when interest rates are high, it can make it less affordable for people to borrow money to buy a home because the cost of borrowing is higher.
The relationship between interest rates and home affordability can be complex, as there are many other factors that can also impact the affordability of a home. For example, changes in property values, household income, and the availability of financing can all affect the affordability of a home.
It’s important to note that while low interest rates can make it more affordable to borrow money to buy a home, they may also lead to increased demand for housing and potentially higher home prices. This can offset some of the benefit of lower interest rates and make it harder for people to afford a home.