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Want to sell your home? Get a FREE home value report. Want to buy a home? Search all homes for sale.Today, we’re going to discuss interest rates, where they are now and where they are headed. Interest rates have really taken a turn for the better in the last month or so. In March, rates have been fantastic and same into April. Recently, rates have dropped from 4.25% and I’ve seen two closings with interest rates at 3.625%. We have not gotten the huge bump that was expected at the end of the last year. Why not? There are a few factors, such as the global economy, oil prices, and fears of a stock correction. Also, this upcoming election has people worried. The Fed continues to keep mortgage rates low, and, as a result, it’s helping the mortgage market out. What does that mean for you? 2016 is going to be a great years for rates, and many people expect that we will hit new historic lows. It hasn’t been this good since 2012, so for a buyer, that can have a lasting effect on your purchasing power. Let’s say you purchase a house at $300,000 with a 3.5% interest rates. If rates go up by a full percent, you’ll only be able to afford a $270,000 house. Usually a 1% increase leads to a 10% decrease in purchasing power. For sellers, that same buyer that can afford your $300,000 home today might not be able to afford that home a year from now. If you’ve been on the fence, get off the fence. This is a great year to buy, and if you’re a seller, there are going to be a lot of buyers out there with more purchasing power, which makes it a great year to sell.