The Federal Reserve raised its policy interest rate by three-quarters of a percentage point, boosting it to a range of 3% to 3.25%.
Action News Jax spoke with a lender. They say although this doesn’t directly impact mortgage rates, buyers could see rates go up in the future.
“You are going to start seeing that trickle down into the mortgage market,” says Eric Bernstein.
Bernstein, the president of LendFriend Home Loans, says these rising interest rates will impact homeowners’ affordability.
“That means that homebuyers can afford less home and it’s tougher to qualify from mortgages in general,” says Bernstein.
According to the Northeast Florida Association of Realtors, in Duval County, the median sales price for a home is $343,000.
Compare that to St. Johns County, where the median sales price is $555,000.
Bernstein believes homebuying in Jacksonville will still trend in the right direction despite mortgage rates likely going up.
There are people that are relocating that need to move there so you are going to see the market hopefully remain strong in Jacksonville,” says Bernstein.
We spoke with Joan Rosario, who lives in Jacksonville.
She says when it comes to this rate increase, she wishes people would consider those who are on fixed incomes, like her.
“I was expecting to get a lower rate, but now I’m getting a higher rate. I’m 81 years old, that’s fine. But I’m on a very limited income,” says Rosario.
According to the Mortgage Bankers Association, a 30-year fixed mortgage rate hit 6% for the first time since 2008.
Rosario says these increases caused her to get less of a house than she wanted.
Unfortunately, we couldn’t find anything in our budget which is happening to a lot of people,” says Rosario.
Although right now, buying a house doesn’t seem like a good idea, Bernstein tells me your mortgage rates can always change.
“The big term that everyone is using is to date your interest rate, you’re marrying your home. You can always refinance when the rates come back down in a year or two,” says Bernstein.
Bernstein adds anytime there is panic in the market, he believes it’s always a good time to buy.
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