Author: Brian Bortz

Something we don’t hear much about in the news or even in general conversation among real estate professionals is the “housing affordability index.” Published by the National Association of Realtors, this is a measure of how much home a typical family can afford in the United States. This article is not speaking to that actual index but will discuss how mortgage interest rates can affect the affordability of housing to the average person. While housing prices fluctuate, I am strictly speaking to how rates affect your payment.

In 2003, we saw mortgage interest rates drop below 6% on average…

There are many questions when it comes to buying a home. Two of the most common are – when is the right time to buy? And, should you buy now or wait until you have more money saved for a larger down payment? Most of us would probably agree that having more money to put down is generally a good thing. However, the current availability of loan programs that require a low down payment coupled with historically low rates might be enough to encourage folks to buy now.

Let’s consider the value of low rates in terms of purchasing power….