Housing market impacted by the increase of interest rates on mortgages | Top Stories

CHAMPAIGN, Ill. (WAND) – The federal reserve recently raised the nationwide interest rate on mortgages but, local brokers and lenders say there won’t be much affected by it.

Broker Matt Difanis at Remax Realty says, what the federal is doing won’t directly affect interest rates.

“So the increase is actually what the fed is doing and what the fed is doing impacts short-term rates and actually has no direct impact on mortgage rates.”

Difanis mentioned that what is currently making headlines, actually has no direct relation to mortgage rates.

Thomas Roth, production manager at PrimeLending in Champaign mirrored what Difanis said.

Roth said, during his time as a lender, they’ve seen many different rates in the housing market. Right now it is at 6% but it has been higher before.

“I’ve said this in the 30 years I’ve been doing this. Mortgage rates are going to move up and down and up and down. We’ve seen 6% mortgage rates before and we’ve seen much higher than that.”

Right now, what both lenders and brokers are warning buyers about is preparing. Now is the time to get back in the housing market if you are looking for a house so you should be looking to get preapproved or talking to lenders right now.

Copyright 2022. WANDTV. All rights reserved.