APPLETON (NBC 26) — Mortgage rates have jumped back above 7% after dropping last week. The 30-year fixed-rate mortgage is averaged at 7.08% this week, after being at 6.95% last week. At this time a year ago, it was at 2.98%.
According to the Mortgage Nerds, a broker in Appleton, people are starting to pull out of the home search.
“I would say when rates first started climbing, it wasn’t quite as drastic. But now the compounding where they’re continuing to rise at that higher pace, we’re seeing more and more people starting to draw back,” said Brian Hofmann, Mortgage Nerds owner and broker.
As interest rates go up to get inflation under control, buyers are slowing down, but according to realtor Amanda Furman, maybe they shouldn’t.
“What you’re seeing on the national news, is not what’s happening in Northeast Wisconsin, but truly throughout the Midwest,” said Amanda Furman, owner of Amanda Furman Real Estate Collective, part of the Coldwell Banker Real Estate Collective.
According to Amanda, not as much is changing in this area of the country.
“There definitely has been some adjustment happening with the rising interest rates, but we still have this extremely strong market.”
The Mortgage Nerds say that the best time to buy a house is always, regardless of what the market looks like.
“If you prepared to buy a home or you budgeted for it, your credit is good enough to buy a home, you have what’s needed to get the financing, now is the best time. It always is, because even if rates are higher right now, they're not going to be higher forever,” said Mike Cox, Mortgage Nerds owner and broker.
Although it might not seem that way, experts say the recent hike in rates could work in the buyer's favor.
“With people pulling back, if you’re still in the market, now you don’t have the competition that you had, there are more and more price drops coming,” said Hofmann.
So, if you’re still looking to buy, the experts think the market has cooled down just enough to find your home.