This Interest Rate Impact chart from the California Association of Realtors® (CAR) shows how changes in interest rates increase both the monthly loan payment but also the amount of income required to qualify to purchase a home. As an example, for a home priced at roughly $551,000, a change in interest rates from 4% to 4.5% increases the monthly payment by roughly $130 per month and increases the minimum qualifying income by approximately $5,000.