Home shoppers purchase two products when they buy a house - the property itself and a mortgage. The difference between the two is the house price is advertised in living color online, on postcards, in QR codes, etc. The loan pricing, however, is a little less dramatic.
The house listed in today's market in Northern Virginia, while listed at $500,000, may actually sell for $515,000 or there abouts. The mortgage price, on the other hand, is measured in interest rates.
How will it effect your buying power? Take a look at the chart below and you can actually measure the power of your monthly payment by watching rates move up and down. About a month ago, rates were around 3.5% - now they are roughly a full percentage point ahead of that mark (yes - 4.5%).
What's the phrase? You snooze you... Oh well - 4% rates are STILL REALLY GOOD RATES. Give us a call if we can help you talk with a loan professional or see how these moves in the market affect your buying power. (703) 821-8300.