Mortgage interest rate increases induce some panic buying in the housing market
Interest rates for a 30-year fixed-rate mortgage have climbed to their highest rate since 2009
SHREVEPORT, La. (KSLA) — “The houses are going quickly, so you don’t have a lot of time to wait and think about what you (want). Usually, just have to jump on if you see the house that you want.”
As mortgage rates creep up getting a house that checks all of the boxes on their must-have list is an obstacle, she said.
“My husband and I have been debating on whether not we should settle for something smaller so we could stay within our budget or slightly increase our budget so we can get what we want right now.”
According to Freddie Mac, interest rates for a 30-year fixed-rate mortgage climbed last week to their highest rate since 2009.
“We’re having to check with lenders regularly because those interest rates are climbing.”
Freddie Mac reports say that a 30-year fixed-rate mortgage averaged 5.27% as of May 5 and that it averaged 2.96% last year during this same time frame.
And for a 15-year fixed-rate mortgage, it was 4.52%; and last year, it was 2.3%.
Realtor Rhalanda Jackson said she is seeing panicked buying from clients.
“You can see the apprehension that people have. Buyers are afraid (that) because the rates are climbing that they are not being able to purchase the home they want to purchase.”
So what can you do if you’re searching or selling?
“I think it’s very important to partner with a mortgage person as well as your Realtor so they can communicate and know exactly where you stand and how interest rates and how that’s going to impact your buying power,” Jackson advised.
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