INDIANAPOLIS (WISH) — Mortgage rates are at their highest level since 2009.
Thusday, the 30-year fixed rate mortgage averaged 5.27%the highest since 2009.
Keeping your money account can seem overwhelming right now. Inflation is at its highest level in four decades, mortgage rates are up, house prices are up and supply is down.
“You’ve taken about 20% of their buying power away from January 1 alone until today,” said Josh Clausen, a real estate agent in Greenwood.
Some economists suggest that home sales this year could fall as much as 10% from 2021 levels.
But even with the uncertainty, says Clausen, business is booming locally.
“I mean rates are up over 2 points since January 1, and we’re still seeing masses of people buying homes and getting ready to head right into our busy season. So, you know, people always do it,” Clausen said.
The most recent report from mortgage buyer Freddie Mac shows the 30-year rate rose to 5.27% from 5.1% last week. Last year, the average rate was 2.96%.
Clausen said the jump is causing sticker shock for some first-time buyers, but, he said, buying everything comes down to budgeting.
“You’re going to pay someone’s mortgage, whether it’s your own or whether you’re renting, you’re paying someone else’s. So you need to figure out what you can afford. When you buy a $300,000 house, you’re not buying $300,000. You are buying a mortgage payment for 30 years,” Clausen said.
He said the change was not as concerning for anyone who had been paying for their house for several years. Clausen said for most homeowners, the 5.27% rate is still relatively low.
“You’re probably not going to refinance, what most people have been doing for the past two years is refinance. You talk to any lender and their refinances have exploded over the last two years because they’ve fallen so low, but we’re so historically low compared to where we’ve been compared to the last 20 years,” Clausen said.