Some of my friends at Republic Mortgage made this diagram representing how purchasing power goes down as rates go up.
It is time to lock in on a home now and take advantage of your extra buying power. If rates go up to 5.75%, your buying power will decrease $20,000. The market isn't going to depreciate that much this year to balance it out.
Here are some other articles about why NOW is the time to buy!
"Rates are going up because of the improving economy and the end of a government push to make mortgages cheaper." - ALAN ZIBEL and ADRIAN SAINZ - "Home Buyers Scramble as Mortgage Rates Jump"
"...the Federal Reserve’s $1.25 trillion program to buy mortgage-backed securities, which likely prompted our recent rock-bottom mortgage rates, came to end on March 31. As many economists predicted, mortgage rates are already on the rise again." - Amy Bell - "Why Now Is The Time To Buy"
"Freddie Mac announced this morning that mortgage interest rates rose to the highest level in 8 months." - Ilyce Glink CBSMoneywatch.com
"For people putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in something decent before rates go even higher." - ALAN ZIBEL and ADRIAN SAINZ - Associated Press
