Quote:
Originally Posted by Papa_lecki
Assuming a $3,000 monthly budget...
-2.65% mortgage rate in Jan 2021 could have bought you a home worth $641k.
-7.23% mortgage rate today could buy you a home worth $434k.
That's a $207k (32%) decline in purchasing power.
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That's mortgage only, insurance and taxes by region affect the total purchasing ability. . in FL with insurance doubling, the home size affordability is also dwindling
DOesn't apply to all cash buyers, 40% of americans don't have a mortgage on their homes. . Also questionable application when moving from a higher cost of living location to a lower cost of living area. . also doesn't apply when downsizing boomer. .
so. . interest rates play a 60 % part, but not the only part and demand can overwhelm supply locally. . meaning none of this is applicable under certain constraints. . specifically moving higher to lower COL and using cash.