Increased interest rates impact on Hinesville housing market
HINESVILLE Ga. (WTOC) - The Federal Reserve increased interest rates by three quarters of a percentage point last week, marking the fourth increase of the year, which could have an impact on mortgage rates and the housing market.
Realtor Jimmy Shanken says there’s always a need for housing in Hinesville, but recent trends are giving some power back to the buyer.
A four-bedroom house just hit the market two days ago and is ready to sell. However, Shanken says the days of getting multiple offers in a few hours are over.
“We’re not seeing as many multiple offers as we were in the past. A few weeks ago, homes were on the markets for a few hours, and we’d have multiple offers above list price,” Shanken said.
While houses are still selling fast, Shanken says this is slightly extending the amount of time they spend on the market. Sellers are still getting their asking price, but he says there’s a little more wiggle room for buyers.
“With fewer offers in the marketplace, buyers are able to negotiate some closing costs. I don’t think we’re back to the point where they’re getting 100 percent of their closing costs, but they are getting some incentive to purchase a home,” Shanken said.
Let’s break down the numbers on this home. It’s on the market for $269,900 with an interest rate of 3 percent, which Shanken says was common a year ago. You’d be paying a little over $1,100 a month.
Shanken calculated today’s interest rate on a VA loan, commonly used by Hinesville residents, with a rate of 4.7%. This would make your monthly mortgage just under $1,400.
“There will always be ups and downs in the market. But you’re not marrying your rate, you’re marrying your house. So, find the home you love.”
Shanken says it’s also a good idea to get pre-qualified for a home loan.
“Understand where you are financially. You wouldn’t go to the grocery store without knowing what’s in your check book. The same with buying a home. You wouldn’t purchase a home or go looking for home until you understand exactly what your buying power is.”
If you have concerns over your interest rates, Shanken says the best thing to do is to reach out to your lender.
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