Housing experts speak out after the Federal Reserve’s recent interest rate increase
SAVANNAH, Ga. (WTOC) - For home buyer Jenna Thornton the recent interest rate hikes are putting a pinch on her home buying process.
“It jumped up a whole half percent the month that we started really looking,” Jenna Thornton said.
She says the interest rate on her mortgage loan increased to nearly 6 percent forcing her to speed up the search process.
“And now, there’s low inventory and high rates and it’s just not a good place to be as a buyer. You just gotta do what you gotta do,” Thornton said.
The interest rate increases will impact a potential buyer’s decision whether to purchase a home says local real estate broker Jenny Rutherford.
“People that have been sitting on the fence, hoping that pricing was going to go down are now starting to get a little scared because the rates are going up. That means what they can afford is a lot less,” Rutherford said.
But Rutherford says she doesn’t expect too big of a slow down for Savannah’s housing market spurred by those moving to the area from up north.
“Now they’re able to come to Savannah, a market like Savannah, and purchase a much larger home for a lot less than what they would get in their market. So we’re seeing a lot of cash coming into Savannah and I don’t think the demand is going to drop for houses.”
And Rutherford is urging anyone looking to buy or sell a home in the next couple of years to do so sooner rather than later to avoid any more potential increases for interest rates.
“Talk to a lender now, lock in your rate and make an offer because the rates aren’t going to get any cheaper any time soon.”
And despite the at times stressful process, Thornton is looking forward to moving into her new home.
“Stress is the biggest factor that’s really affecting us, but at the end of the day, we feel at piece knowing that we are owning a home and it’s still really exciting.”
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