Home News Increased interest rates impact on Hinesville housing market

Increased interest rates impact on Hinesville housing market

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HINESVILLE, Ga. (WTOC) – The Federal Reserve (Fed) raised interest rates by three-quarters of a percentage point last week, its fourth increase this year. This could affect mortgage rates and the housing market.

Realtor Jimmy Shanken says Hinesville will always have a need for housing, but recent trends are giving buyers some power.

A four bedroom home just hit the market two days ago and is ready for sale. But Shanken says the days of receiving multiple offers in a matter of hours are over.

“We don’t see as many multiple offers as we used to. A few weeks ago, homes were on the market for a few hours, but there were more offers than list prices,” Shanken said.

Homes are still selling rapidly, but Shanken says this has slightly increased the amount of time spent on the market. Sellers are still getting their asking prices, but buyers have more wiggle room, he said.

“With fewer offers on the market, buyers are able to negotiate closing costs. We have some kind of incentive to do it,” Shanken said.

Let’s break down the numbers for this house. There is $269,900 on the market at an interest rate of 3%, which was common a year ago, according to Shanken. You end up paying just over $1,100 a month.

Shanken calculated today’s interest rate for VA loans commonly used by Hinesville residents to be 4.7%. This brings your monthly mortgage to just under $1,400.

“There are always ups and downs in the market. But you’re not married to your rate, you’re married to your home. So find a home you love.”

Shanken says getting a mortgage pre-qualification is also a good idea.

“Understand where you are financially. You don’t go to the grocery store without knowing what’s in your checkbook. Buying a home is no different. Until you know exactly what your purchasing power is, buy a home.” or looking for a house.”

If you have concerns about interest rates, the best thing to do is contact your lender, Shanken says.

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