On Wednesday “The Fed” ( The Federal Open Market Committee) raised its lending interest rate by 0.25% to a range of 1.75%-2%, the highest since September 2008.
From NAR “We are still in the middle innings of rising interest rates; consumers should expect another three or four rounds of interest rate increases over the next 18 months,” said NAR Chief Economist Lawrence Yun. “Mortgage rates will consequently continue to nudge higher. Fortunately, the economy is strong and wages are rising. If housing supply can be increased through more home building, then the negative impact of rising interest rates can be mitigated.”
The interest increase impacts potential home buyers with higher mortgage rates. Higher rates mean the interest rates on credit cards payments will also go up. Higher credit card debt may impact borrowers ability to obtain a mortgage
Waiting for home prices and/or interest rates to go down may not happen soon. The average home buyer in greater Cincinnati can expect monthly mortgage payments to impact buying power:
The fixed mortgage interest rates on June 14, 2018, are:
15 year 4.5%
20 year 4.625%
30 year 4.750%
The rates listed above will vary by lender but the impact is the same. Historically low-interest rates still cost the borrower. Waiting to buy a home as rates rise will probably reduce the mortgage amount and the homes available to you.