‘It’s changing a little bit’: Impact of interest rate hike on potential homebuyers
ANDOVER, Kan. (KAKE)- Local Wichita brokers say a fourth hike by the Federal Reserve on interest rates could have an impact on Kansans hoping to buy a home.
The federal reserve announced Wednesday that interest rates would be raised by 0.75 percent; a move that could have an immediate impact on hopeful buyers.
“One of the examples that I'll often give clients is that with rates increasing, we still have high buyer demand,” said Wichita broker Evan Kaufman “But it's changing a little bit.”
Kaufman said instead of a typical five potential buyers per one seller, Kansans may now have fewer buyers to compete with or be edged out of a potential offer all together.
“With the rates increasing over just the past few months a lot of people are noticing I have to pay an extra $100,” said Kaufman. “Or an extra $150."
Kaufman said buyers shouldn’t be too concerned though, with mortgage rates in recent years averaging much lower than in previous decades. Kaufman said the thing to watch though for some people, is how fast those rates are climbing.
Kaufman added that the most important thing for potential buyers to consider, aside from the changing interest rates, is to be prepared for the process of buying a home.
“Cash buyers still have a leg up in this market,” said Kaufman. “Not quite as much as it used to be but they still definitely have that.”
Kaufman said being pre-approved for a home loan is also a leg up, and that potential buyers who have prepared well in advance are typically those that are coming out on top. He also reminded buyers that are still looking to check in with their lenders to see if there been any potential changes to their financing options.
KAKE News also spoke to the Perez family Wednesday who said they’re journey finding a home in Andover was already stressful enough. They said they felt for families who were still going for the process, and were thankful that they weren’t.
“We were in a situation where there was a lot of offers on the house,” said Bryan Perez. "I can't even, you know, think what some people are going through."