When buyers look for a new home, they almost solely look at the purchase price to determine the cost of the home. But interest rates play an important role in determining how much you will pay for that home over the long run.
- Lower interest rates mean that over a long period of time the house will cost you less
- As compared to a lower purchase price but higher interest rates. Over the life of the loan you will often end up paying more
The Affordability Index (shown) put out by the National Association of Realtors indicates how affordable housing is over time – the higher the bar, the more affordable housing is.
Low interest rates. Affordable housing. Now just might be the right time to buy.
See why now is a great time to buy or sell a home!
Also check out the advantages of buying new constructions or existing homes.