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This is Critical for Buyers

How Current Interest Rates Can Have a High Impact on Your Purchasing Power

How Current Interest Rates Can Have a High Impact on Your Purchasing Power | MyKCM

According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 4.61%, which is still near record lows in comparison to recent history!

The interest rate you secure when buying a home not only greatly impacts your monthly housing costs, but also impacts your purchasing power.

Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.

The chart below shows the impact that rising interest rates would have if you planned to purchase a home within the national median price range while keeping your principal and interest payments between $1,850-$1,900 a month.

How Current Interest Rates Can Have a High Impact on Your Purchasing Power | MyKCM

With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.

Act now to get the most house for your hard-earned money.  I can help!

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Don't Put Off Moving Up!

Moving Up to Your Dream Home? Don’t Wait!

Moving Up to Your Dream Home? Don’t Wait! | MyKCM

Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown this not to be true.

Where are home values today compared to the beginning of the year?

While rates have been rising, so have home values. Here are the most recent monthly price increases reported in the Home Price Insights Report from CoreLogic:

  • January: Prices were up 0.5% over the month before.
  • February: Prices were up 1% over the month before.
  • March: Prices were up 1.4% over the month before.

Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter. CoreLogic believes that home prices will increase by 5.2% over the next twelve months.

How can prices rise while mortgage rates increase?

Freddie Mac explained in a recent Insight Report:

“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”

Bottom Line

If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.

Call me to find out what your home's worth in today's market:  moving up may be surprisingly easy!  

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Clogged Toilet? Here's a Tip!

 
Ever had the toilet clog up when there's no plumber to be had?  (Think Thanksgiving Day and your company is almost there. ugh.)  This tip could be a lifesaver!
 

 
(Image credit: Ashley Poskin)

There's a certain sense of urgency that comes when faced with a clogged toilet, and no feeling is quite like that of the pending doom of toilet water, mere seconds away from spilling out onto the floor you're standing on. Thankfully, plungers are designed to save us from that fate — but what if you reach for one and it's not there?

 

Whether you're one plunger shy, or coaxing a clog that a plunger just won't work loose, we have good news for you: If you have access to dish soap and very, very hot water, you've got one more shot at it before calling a plumber!


 
(Image credit: Ashley Poskin)

How To Tackle A Seriously Clogged Toilet With Dish Soap:

  • Fill a pot with a gallon of water and set it on the stovetop. You want it very hot, but not quite boiling. (Boiling water could crack the toilet bowl, yikes!)
  • Pour at least a half cup of dish soap into the toilet bowl, let it sit until the water is ready on the stovetop.
  • Carefully pour the gallon of very hot water into the toilet bowl and watch as the soap helps to unclog the toilet. If you're worried about there being too much water in the toilet bowl once you try to flush, turn the water valve off (located behind the toilet close to the floor).

It might sound crazy, but it actually works!

You may have to wait up to 15 minutes for the clog to work loose. If you don't see any action after that point, you're probably going to need to call a plumber.

This is Why it Works

It's pretty simple — just like they do on food particles that are stuck to your dishes in the sink, the combination of hot water and dish soap help to dissolve and break up whatever

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