Home News How will interest rate hike affect San Antonio’s housing market? Local real estate, lending service weigh in

How will interest rate hike affect San Antonio’s housing market? Local real estate, lending service weigh in

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San Antonio – Wednesday’s Federal Reserve has launched its largest rate hike in almost 30 years, but it is not expected to slow down San Antonio’s housing market.

Jack Hawthorne, CEO of Keller Williams HeritageSaid the federal move could soften our market for potential buyers.

“This may sound strange, but if you want to buy a home, it’s actually a really exciting time,” Hawthorne said.

“People are kind of like, I don’t know if I want to buy. I don’t know if I want to sell. This means that the seller hasn’t received so many offers. Going out. Whenever you bid on a house, you’re probably competing with two people instead of competing with the other 27 people, and you’re now able to ask for things you couldn’t do before. “Hawthorne said.

Another thing Hawthorne should remember is that if potential buyers are thinking about getting a home now, they can wait for interest rates to fall, but the value of San Antonio’s home. Is increasing.

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“Interest rates can go down to 3%, but buying a home will increase the value of the home by 15-16%. In any case, the home will be more expensive to buy,” Hawthorne said. Said. “Usually a better option is to buy a home and plan to refinance within a few years, and the price will go down because owning a home will benefit from its gratitude.”

Hawthorne said the valuations he had experienced over the past few years were “very unsustainable,” but prices wouldn’t go down, but valuations would go down.

“It’s back to the normal 4-6% increase, but prices now have floors. With such a big supply shortage in San Antonio, we don’t expect it to go down,” Hawthorne said. I am.

Lisa Arlette, Mortgage Loan San Antonio Vice PresidentIt’s important to note that some local families may be priced on this hike, if you’ve been looking to buy a home for some time.

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“Since January, interest rates have almost doubled, so if you’re processing pre-determined information, it’s no longer accurate,” Arlette said.

“Debt on income is one of the main eligibility factors for mortgages. If DTI was previously tight, it may now exceed that threshold and stop working on that particular loan program. There is, “says Arlette. “Consult a financial expert to readjust the qualified parameters as well as the expectations to see what other options are available.”

Arlette adds that it may be a good time to fix interest rates, especially if you are considering a new construction or have a new construction contract.

“The next question is, they offer float down, so if the market improves in their favor, can they still benefit,” Arlette said.

However, both Arlette and Hawthorne do not expect another home to collapse as it did in 2008, as it is not the time to panic.

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“In 2008, if you had a pulse, you could get a loan. They had an over-leverage loan. People couldn’t afford to keep them.” Hawthorne said.

“It was a really suspicious combination of lending and predatory lending practices. That’s not the case today. The sky hasn’t fallen. Now we’re back in the normal market environment,” Arlette said.

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