ELKHORN, Nebraska — Emilie Wells and her family are seeking a change; they are unsure if they should refurbish and remain in their current home, or if they are prepared to purchase a new one.
“Seeing rates continue to rise makes you rethink where you should be buying and what you should be buying, because it’s a significant element of the decision-making equation,” Wells said.
Shelli Klemke, a real estate agent, reports that the average home currently sits on the market for 38 days. The lack of haste among buyers to submit offers is causing some sellers concern. She anticipates the Fed’s actions to have the greatest impact on first-time homebuyers.
“Again, these first-time homeowners likely have a budget. Everything entering and leaving is closely monitored. These modifications to their monthly payments will be more significant for those with a lower income “Klemke stated.
As the Federal Reserve continues to combat inflation, mortgage broker Jack Shotbolt expects mortgage rates to moderate.
Currently, mortgage interest rates exceed 6%. Shotbolt anticipates a hike in the next 45 days, but the widespread consensus is that rates will ease next year and fall below 5%.
Shotbolt stated, “Given this sensitivity to higher interest rates, I believe it will be beneficial for a robust housing market, particularly in the Omaha area.”
It is paving the way for future purchasers like Wells, who is eager to plant roots.
“It’s just unknown: is now the appropriate time? It nearly always feels a little bit like a bet, and you want to make sure you come out on top “Wells remarked.
In light of fluctuating interest rates, clients should consult mortgage lenders to determine which sort of loan is most suitable.