As the heat continues to climb, we’re also seeing a lot of prices continuing to climb as well, gas, food, rent, etc. Today, we’re seeing how interest rates are just the latest to see spikes.
The rise in mortgage rates is something that we’ve never seen before. The mortgage rate has been rising since the start of this year. Averaging 3 percent in early January rising to the fives last month. Now that the Federal Reserve increases interest rates by their highest level in nearly three decades, we’re in solid sixes.
In South Carolina, as of June 15, 2022, current rates are 5.96% for a 30-year fixed, and 5.16% for a 15-year fixed. These rates may spike anytime soon.
The new fed interest hike will affect housing, specifically people looking for a home loan. There are going to be fewer people buying either because it’s a shock or just because they can’t afford to buy anymore.
The brisk spike in rates, along with a sharp increase in home prices, has been pushing potential homebuyers out of the market. Costs are continuing to rise even in the greater Greenville area. In Greenville, prices moved higher as the median sales price was up 19.9% to $315,245.
As the housing market becomes increasingly competitive, the costs of buying a Greenville home are continuing to rise. If you’re committed to buying, make sure to keep your mortgage preapproval up to date. As interest rates increase, your budget won’t stretch as much. You may have to adjust your target price range. The best bet is to stick to a monthly payment that won’t strain your budget. It is also helpful to work with a Greenville realtor who will guide you through the home search with your best interest at heart, helping you meet your real estate goals while staying within your budget.