Mortgage rates are rising, will this slow down the housing market?
RENO, Nev. (KOLO) – The spring home buying season is underway and while the market is still strong, it is also moving in ways that could slow the buying frenzy this year.
Mortgage rates are rising, inflation is skyrocketing and soaring gas prices are squeezing budgets already facing affordability challenges due to steadily rising house prices in recent years.
“We’ve seen interest rates rise dramatically, probably over the last three to four weeks,” said Rory Butler, loan officer and licensed mortgage adviser at Bay Equity. “It’s been a challenge for some people who think they’re entitled to a price and now that interest rates have gone up half a point or more, that changes the math.”
Butler and local realtors agree that spring continues to be a great time for sellers as inventory remains low.
“We are still looking for 250 to 270 active and available single-family homes in Reno-Sparks,” said David Tully, realtor at eXp Realty.
The average 30-year fixed rate mortgage in Nevada is currently 4.8, 4.9%, according to US Bank.
If it continues to rise, Tully says it will slow buyer demand.
“I think we could get a moderate increase in the number of homes in the spring, but I still think it’s going to be pretty competitive because, like I said before, two weeks of inventory isn’t a lot. They say a healthy market has six months of inventory,” Tully said.
Experts say it’s still a good time to buy if you’re ready, just keep in mind that rates may continue to rise.
“There is nothing we see as lenders that suggests the demand for homes in our community is going to decline at all, in fact with more businesses moving into our community we are going to see even more housing demand,” Butler said. .
The current seller’s market will likely be with us for some time.
If rates go up before you find a home, it’s a good idea to try shopping in a lower price range, be patient, and seek advice. Also agree with lenders and consider your long-term goals, such as how many years you plan to live in this home.
To contact David Tully, call 775-525-0746 or email firstname.lastname@example.org. For Rory Butler, call 775-303-5670 or email email@example.com.
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