Interest rate hikes affecting housing market

Feds increase interest rates for second time in three months

Fresno, Calif. - Federal interest rates are up and for people looking to buy or sell a house they're of much concern.

This is the second time they've increased it in three months.

Real Estate Broker Gary Carter says right now its a sellers market.

Carter says theres only a three month supply of homes in Fresno on the market right now and they're selling fast.

He says if you're looking to buy or sell the time is now because he predicts more interest rates hikes before the year is up.

"I'm getting lots of calls from yesterday from people wondering if their payments will go up," said Carter, Broker for Movoto Real Estate.

He says the Federal Fund increasing interest rates by .75 percent could affect payments, especially if his prediction comes true that more hikes are on the way.

"Your payment may be increasing between 100 and $200," said Carter.

For a 30 year loan on your mortgage, Carter says interest rates will be around 4 percent.

"I do believe by the end of this year we may see close to five," said Carter.

Financial Advisor Martin Mazorra says that will not only affect mortgage loans but all loans.

"Consumer loans, student loans, car loans that kind of thing," said Mazorra, who works at Private Wealth Advisors. "If the Feds inches interest rates up two, three or four more times this year yes we will see an impact on those consumer loans."

Although interest rates are going up, Carter says Fresno is still more a affordable place to live than the Bay and LA.

"We just closed a house on a client a $220,000. It was a three bedroom, two bath, 1,400 square feet house in northwest Fresno. That is still affordable in Fresno County," said Carter.

Carter says the average price of a home in Fresno is going for a little over $250,000. 


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