NASHVILLE, Tenn. (WTVF) — Mortgage rates have hit their highest level since July of last year, with the average 30-year fixed mortgage rate rising to 6.71% this week, according to Freddie Mac.
The eye-popping number has some home-buyers hesitating and some home-sellers at a standstill.
"For the average Joe, it means you can't buy as much house. Your mortgage payment is going to be much higher," explained Angela Martin, a senior loan officer at Movement Mortgage. "So you're not seeing a lot of homes come to the market right now, and the homes are sitting a little bit longer."
Even so, she claims it's not a bad time to buy. In a buyer's market like this one, she said sellers will offer various incentives to close the deal.
"I've seen sellers giving away $100,000; I've seen them give away $50,000 on two projects in town — actively, right now," she said. "They're able to get those interest rates down to 5.875%, for example, if the seller can pay for it. So it depends on how bad the seller wants to get out of their house."
"[The high rate] makes your monthly payment really kind of unaffordable, we'll say, and just really hard to manage if you are somebody that's on a budget," added Blake Stewart, the public relations director with Greater Nashville Realtors.
He personally understands the struggle — his family has been looking for a home in the area for one year. After considering relocation to another state, seller incentives and a negotiated rate ultimately helped him and his family secure a new home in Tennessee.
"Even half a percentage point from a 6.6 to a 6. You're talking a couple hundred bucks, and for a lot of people, that makes all the difference," he concluded.
Do you have more information about this story? You can email me at nikki.hauser@newschannel5.com.
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