Mortgage rates rise with inflation

Image by tkoch from Pixabay

Mortgage rates are continuing to rise with the rise in inflation, but realtors are reminding you to keep things in perspective if you are growing skeptical of buying a house.

On Thursday mortgage rates rose to 5.27-percent, the highest mortgage rates have been since 2009. Rates have been below three percent the last few years which has caused the market to be flooded with buyers but not enough homes to sell.

Many economists expect home buying to continue to decline compared to 2021, but realtors like Josh Clausen in Greenwood say that business is booming.

“I mean rates have gone up over 2 points since Jan. 1, and we’re still seeing droves of people buying homes and we’re getting ready to be right into our busy season,” Clausen said to WISH-TV. “So, you know, people are still doing it.”

He urges prospective homebuyers not to get “sticker shock” because of the increase in mortgage rates. He adds it’s all about budgeting.

“You’re going to be paying someone’s mortgage, whether it’s yours or you rent, you’re paying someone else’s,” he said. “So, you got to figure out what you can afford. When you buy a $300,000 house, you’re not buying $300,000. You’re buying a mortgage payment for 30 years.”

He said for people who already have a mortgage, even the rise to over 5-percent is not enough to consider refinancing.