NORTHAMPTON, Mass. (WWLP) – Interest rates are going up again and this most recent rate hike is the highest since 1994. What does that mean for you, especially if you are buying a home?
Interest rate hikes basically impact what you are able to buy. David Murphy, Booker and Owner of The Murphy Realtors, said these rates are particularly impacting first time homebuyers.
The most recent rate hike is three quarters of a percent. Its on top of the other rate increases we have seen these last few months. The goal is to combat inflation.
David Murphy said this rate increase will not only impact first home buyers, but renters as well.
“Theoretically they’d be moving on to their first home, freeing up apartments for people who want to get places to live,” Murphy told 22News, “They can’t leave because now they can’t afford a mortgage because rates went up 2%”
It is important to throw in the historical context here. Before these rate hikes we were seeing historically low interest rates and even with the rise in rates, mortgage rates remain far lower than in the 90’s.
David’s advice if you’re looking to buy? Keep looking. It may take awhile, but having a good idea of what prices homes are going for in the market can help you in your search.