The Power of Interest Rates on Buying Power
Sometimes it takes a chart to make things click. Numbers on paper are one thing, but when you see a graph that shows how much more house you can buy as rates drop, it hits different.
Here is the reality. A buyer qualified for a $400,000 home at 6.5 percent is boxed in. Options may be limited, and your clients may feel the compromises are too heavy. Now drop that same buyer into a builder offering 3.99 percent and it changes everything. Their purchasing power jumps by over $100,000. Suddenly a $500,000 purchase price may actually fit their needs.
The chart shows it clearly. Each one percent drop adds roughly $35,000+ of purchasing power. This is the kind of difference that turns a cramped three-bedroom into a comfortable four-bedroom, or a fifty minute commute into something your clients can live with.
Obviously every buyer has their own set of qualifications, guidelines, and parameters. Nothing is cookie cutter. But the point is this. If your clients are stuck, waiting, frustrated, or on the verge of giving up, do not ignore the rate options builders are putting out there. Builders are motivated, they are creative, and some of them are offering financing packages that can put your buyer in a much stronger position.
Waiting for that one perfect resale home to show up, at the perfect price, with the perfect features, and the perfect rate, is like waiting for a unicorn to trot into your backyard. In other words, you are goi
