Yes! Now you’re getting it. With lower interest rates you can qualify for more home – especially with prices as low as they are today.
Take 3 minutes and read this very short article on how and why a higher interest rate can keep you from qualify for the same home you qualify for at lower rates.
For people who need to purchase a new home in the Atlanta area the numbers do line up well for the buying opportunity. The oversupply of available home listings, fixed 30 year interest rates at or near four percent, and underwriting guidelines trending toward “reasonable” it certainly is time to consider the move. Now here is some really good news: lowest interest rates results in lower monthly payments which changes the buyer’s debt-to-income ration resulting in the ability to buy more home for less money.
It becomes quickly obvious that as interest rates rise the buyer qualifies for less home. This is the primary reason today is a very good time to buy because rates are incredibly low (and will not stay that way) and home values are “in the tank” (and will not stay that way).