Mortgage rates true gauge of buyer-friendly market

Posted By on August 9, 2011

By Mary Beth Nevulis, HousingZone Contributing Editor

Categories: Industry Data & Research, Housing Zone, Professional Builder, Research / Data

August 1, 2011

According to John Burns Consulting, potential home buyers and media are focused on the wrong housing market metric – price. What consumers and the media are ignoring is the monthly payment, which is superb right now and unlikely to get much better.

If prices fall another 10 percent, but mortgage rates rise 1 percentage point, fewer people will be able to qualify to buy a house.

If prices stayed flat and mortgage rates inched up 1 percentage point from 4.5 percent to 5.5 percent, the same house would cost you 12 percent more per month to buy. A movement from 4.5 percent to 6.5 percent would increase your mortgage payment by 25 percent.

 For more information, visit http://www.housingzone.com/industry-data-research/consultant-consumers-wrongly-focused-home-price

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For more information on buying a home in the Greater Cincinnati area market, visit http://www.potterhillhomes.com/

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As the people behind Potterhill Homes, we have some pretty strong feelings about energy efficiency and green building. And we don't always agree! But we are commited to building a best homes we can and bringing you along on our journey to figure out exactly what that means! Thanks for checking out our site. My Google Profile+

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About Potterhill Homes

Cincinnati-based Potterhill Homes is a premier builder of affordable, environmentally friendly homes in Greater Cincinnati. Our homes are built with traditional Cincinnati architectural styles and are perfect for both urban infill and suburban development. To learn more about Potterhill Homes,visit www.potterhillhomes.com.


About the authors

As the people behind Potterhill Homes, we have some pretty strong feelings about energy efficiency and green building. And we don't always agree! But we are commited to building a best homes we can and bringing you along on our journey to figure out exactly what that means! Thanks for checking out our site. My Google Profile+