RALEIGH, N.C.(WNCN) – People looking to buy a new home are facing an uphill climb that includes increased mortgage rates.
“Right now, we’re saying we should have bought six months ago. Personally, I would buy a house right now,” Jessica Dillon said, a Raleigh real estate broker and director of growth and development with Keller Williams Preferred on the Pappalardo team.
For first-time homebuyers, purchasing just got more intimidating.
Thirty-year mortgage rates have nearly doubled. Rates are now at 5.78 percent, a mark that’s up from last week’s rate of 5.23 percent. Current rates are also nearly double what they were one year ago when they were just below 3 percent.
“If 2020 never happened, we would be at seven percent so we’re comparing and saying ‘Oh gosh, things are going up,'” Dillon said. “The reality is, we should have been at this rate if not above, already.”
While mortgage rates are changing, so is the Triangle’s housing market.
While a few months ago dozens of people would have flocked to an open house, today things have slightly slowed.
“We’re still seeing strong offers,” Dillon said. “Where you may have received 10 offers before, you may now receive five on the listing side, but you’re still having very, very competitive offers at that pricing.”
She said the Triangle’s biggest housing challenge is the high demand for homes, but low supply.
New apartment buildings are popping up in every corner of the Triangle, but the same can’t be said about houses.
“We don’t have enough homes. New construction is behind and more and more people need to move here,” Dillon said.
More than 60 people are moving to the Triangle every day, research shows. If you’re looking for a home, Dillon recommends getting an expert on your team who understands trends.
“I think having professionals in your corner, rather than going out and doing it by yourself, is the best (one) could possibly do,” Dillon said.
Something else to keep in mind are those big companies moving to the Triangle in the coming years such as Apple and Google. Their employees have deeper pockets that can afford to nab homes more easily. Dillon said that will create an even bigger housing crunch for the rest of us.