Interest rate increase to impact potential home buyers
(WWLP) – Inflation continues to be an ongoing issue here in the US. The Federal Reserve increasing interest rates by half a percentage to combat inflation and that means borrowing costs are going up.
22News spoke with a loan officer from Northpoint Mortgage about what this means for people trying to buy a home right now. They told us that there is still a very limited inventory of homes, which means its a seller’s market. They explain because of this, you want to check in with your loan officer if you are still a well qualified buyer.
Norma McKay, Senior Loan Officer at Northpoint Mortgage said, “So if you were preapproved or approved 30 days ago you really need to check back in every few weeks with your loan officer if its taking you some time to secure a house, because your qualification may have changed based on the interest rates doing.”
They add that people who are lower qualified will be driven out of the housing market because there isn’t enough available properties on the lower end.