NEW PORT RICHEY, Fla. — Courtney Walker is shopping for her first home and said she’ll be glad when it’s over.
“This process is always nerve-racking. It always seems like a lengthy process until it’s over,” she said.
And to afford her house, Courtney is working two jobs. One during the day at a title company and a second one at night at a restaurant.
“Working two jobs is daintily going to be one of the reasons I’m able to afford a house. So if that tells you what the market is like.”
Those trying to get a mortgage for a home are facing the highest interest rates in more than 20 years.
The average interest rate on a 30-year fixed home loan is now above 7%.
That’s more than double what it was the last two years.
“Historically, if you look at the interest rates, they are really where they would have been without COVID," said realtor Kelly Mothershead with Keller Williams Realty.
Mothershead said the market is actually balanced despite those higher interest rates.
“When the interest rates go up, what you can afford goes down. So most people can afford a little bit less in a mortgage right now. But if they wait until the interest rates drop, than everybody is going to be out shopping. So now it’s going to be more competitive. So in those lower price ranges, it’s going to be really hard to find a home,” she said.
BettyAnn McCloud is a manager with Atlantic Bay Mortgage and said it’s always good to buy so you can build equity.
McCloud said home prices will go up when mortgage rates drop.
“What we saw three and four years ago during COVID that was abnormal. It wasn’t the typical. So we are kind of getting back into the normal real estate cycle,” said McCloud.
There is talk interest rates could go even higher. Although some analysts say they could start dropping by the end of the year.
The National Association of Realtors said sales of existing homes fell nearly 19 percent in June from the year before.
