1% = 10%

For those trying to predict the "bottom" of the real estate market for maximum savings, please keep this in mind.

Every 1% increase in home loan rates decreases the buying power of an indiviual by 10% in home price. Ths means that if you qualify for a home priced at $200,000 today and interest rates increase 1%, the amount you qualify for would be reduced to approximately $180,000 to maintain the same payment.

This is a good example of how important it is to take advantage of today's opportunities before there's even a slight change higher in rates.

There has been a lot of "Fed talk" recently that exposes the wide range of opinions on which direction the Fed will take and how volatile our mortgage rate environment is. We've been spoiled with Fed intervention and a series of international events that have kept us at record lows. While I can't predict the "when", I can tell you that it is only a matter of time before rates return to more traditional levels.

Prospective buyers: get pre-approved and go see what is out there for you.

Realtors: please share this tid-bit of info with your clients. This may get them off that proverbial fence.

Homeowners: I'm amazed to find so many who have yet to refinance into better terms. Let's talk. If we can't get you qualified, we'll formulate a plan to get you there.