See the daylight. Get the savings.
If you’re in the market to buy a home in Portland Metro or Southwest Washington, the savings you can get right now are like daylight - they’re good for you, but they won’t last forever.
Lower mortgage rates – for now.
Interest rates are edging up and smart buyers know that this trend can significantly reduce their purchasing power. With an eye on mortgage rates, many would-be homebuyers who had been sitting on the sidelines in 2010 are jumping feet-first into the market. Get the savings on your home purchase now, before rates go up again. See the chart below to find out how much a 1% rate increase will impact the amount of home you can buy.*
Purchasing Power Today 1.0% Increase in Rate 10% Less Home
Purchase Price: $500,000 $500,000 $450,000
Loan Amount: $400,000 $400,000 $360,000
Interest Rate: 5.00% 6.00% 6.00%
APR: 5.133% 6.141% 6.147%
P&I Payment: $2,147 per month $2,398 per month $2,158 per month
Use Coldwell Banker Seal's Affordability and Mortgage calculators to see how rate changes can impact your payments on specific properties and in various price ranges.
* Assumes a down payment of 20% and a 30-year fixed rate. Monthly payment does not include taxes & insurance. Actual monthly payment obligations may be higher. Programs, rates, terms, and conditions are subject to change without notice. Source: Landover Mortgage.
Lower home prices
Locally, home prices have been falling. In fact, just recently the median price for homes and condos that sold in Portland Metro was $215,000, down 10.4% from a year ago when the median selling price was $240,000. And in Southwest Washington, the median selling price was $195,000, down 11.3% from a year ago.*
One positive result of lower median home prices in our area is that homes are now more affordable to the average homebuyer than they have been in some time. See the charts below for a view into affordability trends for Portland Metro and Southwest Washington homes.
* Source: Regional Multiple Listing Service (RMLS) for January 2011.
For more information about getting the savings, or for customized examples of how today’s mortgage rates and home selling prices will affect your purchasing power, contact your CBSeal Realtor® today.