Interest Rates vs. Declining Home Prices
A 1% increase in interest rate would negate a 10% decrease in home price. For example, a $400,000 loan at 5% carries a payment of $2,148. A $360,000 loan at 6% results in a $2,158 payment.
A 1% increase in interest rate would negate a 10% decrease in home price. For example, a $400,000 loan at 5% carries a payment of $2,148. A $360,000 loan at 6% results in a $2,158 payment.