Interest rates are a powerful economic force.  Because historically low rates have been commonplace for a couple of years, it is easy to accept this condition as the norm.   Home Buyers must understand that an increase of one percent may reduce their buying power by 10%!  For example, a loan of $180,000 @4.5% equals a principle and interest payment of $1009 per month.  At 5.5%, which is still an incredibly favorable rate, the same loan will run $1130, or $121 more per month, $1452 per year, totaling $43,560 over the life of the loan! 

As prices stabilize in popular areas like Asheville, Maggie Valley and Waynesville and interest rates continue to increase the cost of buying your dream home or that second home in the mountains becomes more expensive. Your buying is reduced so there has never been a better time to consider buying a home than right now!