In an effort to stave off record-high inflation, the Federal Reserve has raised the prime short-term lending rate by ¼ of a percent; meaning higher loan rates for businesses and consumers. Louisiana Realtors Association CEO Norman Morris says standard mortgage rates are now at over 4-percent; their highest since April of 2019.
“Just to give a little bit of background, specifically the 30-year fixed mortgage rate rose from 4.16% from the 3.85% the week before,” said Morris.
Morris says, yes, the rate increase will mean buying a home may be a bit harder – especially for first-time buyers – but the real estate industry remains positive for the economy to stabilize.
“We are hopeful we can get inflation under control as quick as possible and our hope is that the feds will not have to keep raising the rates to fight this inflation,” said Morris.
Despite the interest rate hike, Morris says real estate is a sellers’ market right now, and prospective buyers will still be motivated to make that big purchase.
“The rates continue to be historically low, but these upticks do affect individuals and couples and everyone trying to purchase, but we encourage everyone, we think it’s a great time to buy,” said
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