Donna Yates, Move 2 North Don't Let Interest Rates Steal your Buying Power, Run the Numbers

Don't Let Interest Rates Steal your Buying Power, Run the Numbers

North Georgia Mountains, Blue Ridge Real Estate, Mortgage Rates, Buying Power, Move 2 North Georgia


Inman news reporting mortgage rates continued to climb at year-end.  The final week of 2010 had 30 year fixed rate loans at their highest level since May according to Freddie Mac.  Thirty year fixed rates averaged 4.86% in the last week of 2010, up from 4.81% the week before.  But still below 5.14% which was the rate recorded at the same time in 2009.  Rates hit a record low of 4.19% in mid-October and averaged 4.7% for the 2010 as a whole.


Fifteen year fixed rates averaged 4.2%, up from 4.15  in same time frame mentioned above, but still down from 4.54% a year ago.


As I've recently written, rising interest rates reduce buying power.  Many real estate markets throughout the nation seem to be turning the corner and on the upswing and so it goes with rates.  Still lots of inventory and low prices but you "gotta" keep an eye on those darn rates!  A 1/2% increase in rates equals a 5% decrease in buying power.


Thinking about buying but still not sure, maybe investing but iffy, asking yourself, "how much can I afford"?, or "is it better  to rent vs. buy?"  I can help you run the numbers and assist you with lenders who are ready to make loans and pre-qualify you.  



 Move 2 North Georgia, Donna Yates, Broker Associate, Blue Ridge Real Estate

                    Move 2 North Georgia  

 Donna Yates
Broker Associate
Realtor®, GRI - Graduate Realtor Institute
706-633-0644 Mobile 
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Donna Yates
Associate Broker, GRI
706-633-0644 Mobile
Serving North Georgia Mountains and Metro
Metro Brokers - Better Homes and Gardens Real Estate
706-515-7500 Office







Comment balloon 7 commentsDonna Yates • January 05 2011 05:49PM


I'm afraid we're singing to an empty auditorium and no one is listening to us with this important information about interest rates.  When rates hit 6, 7, 8% in the coming years, it will be tough to refrain from saying "I told you so".

Posted by Margaret Woda, Maryland Real Estate & Military Relocation (Long & Foster Real Estate, Inc.) over 8 years ago

I don't think buyers realize the implications of interests rates on their buying power. As Margaret points out no one wants to listen and when they finally do it's probably gong to be too late.

Posted by Victor Zuniga (Berkshire Hathaway Home Services California Properties) over 8 years ago

Margaret:  Educating the public is ever perpetual.

Victor: I appreciate your's and Margaret's thoughts.  Educating the consumer is one of the many valuable services we provide as real estate professionals.  It seems that too many buyers are more focused on finding a bargain meaning "price" as their bottom line, which is all well and good, but I think they should not overlook the importance of their buying power and how that decreases as rates increase.   

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) over 8 years ago

Donna - Great reminder! The good news is, rates are still fantastic.

Posted by Carla Freund, Raleigh - Cary Triangle Real Estate 919-602-8489 (Keller Williams Preferred Realty) over 8 years ago

Carla:  You are so right and even though they may be creeping up a bit, they are still outstanding.

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) over 8 years ago

It is interesting that buyers think those rates will be around forever.  The recent change in the FHA insurance premium reduced buying power by $16,000.  It was their decision to wait, and consequently they will PAY for that decision.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) over 8 years ago

Kathy: I think it's all just so confusing for the consumer.  All the more reason they need a good Realtor to help guide them through a challenging housing market.  Sounds like you are on top of things.

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) over 8 years ago

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