Impact of interest rate hike on local housing market
MID-MICHIGAN (WNEM) - The Federal Reserve is raising interest rates to a range of 5 to 5.25 percent, which will make it more expensive to take out a loan or a mortgage.
This is the tenth time the Fed raised rates since March of last year. Since then, mortgage rates have doubled.
“Mortgage rates are not always tied into the Fed rate. So, we actually saw a little bit of a down tick this week in our local mortgage rates,” said Shelly Niedzwiecki, a real estate agent with Ayre/Rhinehart Realtors
She said the Feds latest increase in interest rates isn’t having an impact on the area’s housing market, adding potential home buyers aren’t shying away from the American dream.
“I feel that we’re out of that huge jump where people were used to 3 and 4 percent, and then, hey, went up to 6 and 7 percent. And people had a little bit of a mild panic at that time. Thinking that ‘Oh no, what is this going to do to our buying prospects?’ However, we’re a good eight, nine months into these rates now. And it’s becoming to feel like normal for the people who are just getting into the market right now,” Niedzwiecki said.
While the future of interest rates is uncertain, Niedzwiecki said she has some advice to help home buyers stay prepared.
“Absolutely talking with their local lender right now, our local banks, credit unions, they are ready and willing to talk to potential buyers, walk them through the process. Most of them are now giving a little bit of extra counseling with the rates a little bit higher than they were in the last couple of years,” she said.
Subscribe to the TV5 newsletter and receive the latest local news and weather straight to your email every day.
Copyright 2023 WNEM. All rights reserved.