Did you know that interest rates are still relatively low?  According to Freddie Mac’s latest market survey, interest rates are currently at 4.09% for a 30-year fixed rate mortgage.

This is great news!  Not only does a low interest rate impact your monthly costs, but also your purchasing power. Purchasing power is simply how much you can afford to buy for your budget. So as rates rise, your buying power decreases if you have a particular housing budget.

This chart shows the impact of rising rates if you plan on buying a home in the national median price range and keep your monthly payments at about $1100 per month.

With a quarter of a percent that rates rise, the value of home you can afford decreases by 2.5%.  Rates are predicted to rise to 5% by next year.  So now is the time to act if you plan on buying a home in Eugene, Springfield, or the surrounding communities in the Willamette valley.