FORT WAYNE, Ind. (WANE) – Home loans are usually the first step you make when buying a home, and an interest rate comes with that.
According to Freddie Mac’s records interest rates have went up over 2 percent within the last 6 months in the United States. Tiffiny Holmes, a Broker with Keller Williams Real Estate, says this remains the reality for Allen County as well.
It’s all a part of a campaign through the Federal Reserve set in place to combat inflation. The Federal Reserve is expected to raise interest rates again Wednesday, for the 4th time since March. Holmes says the rise in interest rates are affecting the amount home buyers’ can purchase homes for.
“For example, you have a buyer that’s approved for $200,000, back when interest rates were 3% and 4%, Now that interest rates are over 6%, that buying power was $200,000, so now we’re seeing their buying power was somewhere between $170,000 and $180,000,” Holmes said.
Holmes has worked in Real Estate for 15 years. She says even with higher interest rates, compared to the beginning of her career, she’s encouraged by what she’s seen in recent years.
“When I started, we were actually in a recession,” Holmes said, “So now to see and experience what I have in the last three years it’s been quite refreshing so I would encourage any first time home buyer or any home buyer period, is just to stick with it.”
Holmes says that in 6 months, homes went from selling in 24 hours, to now staying on the market for 15 to 30 days. She says this isn’t necessarily a bad thing.
“It gives your buyer an opportunity to actually shop, to actually go into the home and feel it and make sure their making the right decision for their family,” Holmes said.
When looking at what kind of home Allen County residents are looking for, Holmes says the market is so unique, that she sees a little of everything.
“The cost of living is very affordable here, so you get a lot of bang for your buck,” Holmes said, “Because of our diversity that we have here, diversity in housing, area, and location, we have a lot to offer and no matter what you’re looking for, Fort Wayne has it for you.”