Wednesday, June 10, 2009
Impact of Higher Mortgage Rates
The above graph tracks the monthly mortgage payment assuming the median new home price and the Freddie 30 year mortgage rate.
March, 2009: home price $209,700; rate 4.81%; payment $1,101.49
April, 2009: rate 4.86%; to keep the same payment, price needed to drop to $208,500 (data released shortly)
May, 2009: rate 5.29%: to keep the same payment, price needed to drop to $198,600
That would be a 4.75% price drop in 1 month. Still shootin' greens partner?