How interest rates affect purchasing power

August 20, 2013

Interest rates greatly affect your buying power.  To illustrate this simply, imagine your desired monthly principle and interest payment is around $1,000.

The chart shows the rate at left, the corresponding P&I payment and the cost of home that you’d be able to purchase at the bottom of the chart.

A 1% change in interest rate can decrease your buying power by $20,000.


Whether you are buying or selling, this is important. Talk to your local First Weber real estate agent about the real estate market in your community.  It may be time to list your home for sale and buy up (or downsize) while interest rates remain on the low side.


Thanks for reading the First Weber Wisconsin real estate & Wisconsin living blog for information on how rates affect a buyer’s purchasing power. If you liked this post, please share.


Subscribe via email for blog updates