Mark Vehaun and I discuss how interest rates are keeping home prices affordable.
Home prices have skyrocketed in many areas, and it’s left a lot of buyers wondering if they can even afford to make a purchase anymore. I’m here today with Mark Vehaun of On Q Financial, who’ll help me explain what these high prices mean for your buying goals.
With good credit, interest rates are around 2.5% on a 15-year loan and 3% on a 30-year loan. These are historically low rates, and they help make home prices much more manageable. With these rates, if you wanted to buy a $200,000 home, you could easily afford it with a $50,000 annual income and no debt. So, even though prices are up, interest rates are keeping things affordable.
Mark also says that buyers should get pre-approved for the maximum amount they can qualify for from the outset. This helps them know exactly how high they can go when making an offer.
It’s still possible to get a fantastic home in today’s market. If you’re ready to start your search, or if you have any questions, feel free to reach out to me. I look forward to hearing from you soon.