"A small change in the rate can make a big difference over time. On a 30-year loan, a 0.01% or 0.5% change can add up to thousands or even tens of thousands of dollars in interest."
"Every 1% change in the interest rate affects your buying power by 10%. If you qualify for a $400,000 home at a 6% rate, and rates jump to 7%, your budget may drop to around $360,000 to keep the same monthly payment."
"Waiting for the perfect rate can backfire if prices continue to rise. Buyers who can afford a payment now often benefit more from starting to build equity sooner."
"It is not fully a buyer's market yet, but well-prepared buyers do have more leverage now than they did during peak competition."
Homebuyers in summer are encountering increased inventory, which impacts their purchasing power. Mortgage interest rates hover near 7% but have dipped recently, benefiting buyers. A 0.01% to 0.5% change in interest rates can greatly influence overall costs on a 30-year loan. A 1% shift in these rates alters buying power by 10%. Current home prices are roughly stable. While the market is balanced and not entirely favoring buyers, financially astute buyers can gain leverage against previous competition.
Read at SFGATE
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