RALEIGH, NC — The Federal Reserve’s interest rate hike will affect Americans in a variety of ways, including home buying, auto loans, student loans, and more.
What do you want to know
The Federal Reserve raised interest rates by three-quarters of a percentage point on Wednesday
Mortgage broker says homebuyers shouldn’t be afraid
Brian Grubbs is the President and CEO of Raleigh Mortgage Group
The rise in interest rates is the largest in more than 20 years.
The decision of the United States central bank is to fight inflation.
“The labor market is extremely tight and inflation is far too high. Against this backdrop, the Federal Open Market Committee today raised its policy rate by 3/4 percentage point and expects continued rate increases to be appropriate,” Federal Reserve Chairman Jerome Powell said Wednesday. during a press conference.
A mortgage broker says it’s not the end of the world for potential buyers.
“Rising interest rates really don’t make a monthly payment much more,” said Brian Grubbs, CEO and President of Raleigh Mortgage Group. “Rising interest rates have leveled the playing field a bit just because we’ve pushed some people out of the business.”
He said potential home buyers will need to take more into consideration when deciding on a purchase.
Grubbs believes it all comes down to how you approach the home buying process.
“We’re staying busy, man,” Grubbs said.
Grubbs has been helping families through the mortgage application process for over 20 years.
“Over the past few years, with interest rates being so low, people have been able to buy their dream home on the first purchase,” he said.
This may change. The median buyer may need to consider this more. Rising interest rates will push up the monthly payment and the cost of living will increase for the inhabitants of the Triangle.
“We are still in a seller’s market. I mean it’s an amazing time to sell a house, but it’s harder to buy one right now,” Grubbs said.
The availability of houses on the market partly explains why. The 20% increase in property values was largely due to the influx of people settling in this part of the state.
However, he said don’t let these influences dampen your enthusiasm for house hunting.
“I know we’re in a rising interest rate environment, but I think that’s a sign of a healthy economy,” he said from his office north of Raleigh.
The mortgage guru said people need to understand that certain factors affect what a home seeker receives. Credit score, home sale price, loan amount, down payment value and mortgage term all come into play.
“Over the past few weeks we’ve seen a lot more buyers being able to secure a contract,” he said.
Before the rate hikes, some interested homebuyers may have had a bit more wiggle room.
The more money you invest, the better your interest rate will be.
“I wouldn’t let an interest rate stop me from buying a house right now,” Grubbs said.
He advises buyers to think about the different types of mortgages available and shop around until you find what works for you.