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Realtor: Rising interest rates slowing down home buyers
As interest rates increase, realtors say the less people are shopping for homes.
ORLANDO, Fla. - As interest rates increase, realtors said fewer people are shopping for homes.
Realtor Ken Pozek said buying a home today is very similar to the pain at the pump not too long ago.
Back on Memorial Day, Frank Purcell said, "For everybody, it’s a terrible thing," and Rubin Rodriguez added, "Expensive."
"When gas prices went from three to five dollars, people were like shocked. They didn’t go out. They started to plan their routes a little more cautiously," Pozek said.
He said customers are handling it the same way when buying a home with rising interest rates. "They’re like, is this something I really want to do. Let me re-evaluate."
Interest rates have been going up the past month and a half, Pozek said. "Mid 5%, high 5% at this point."
People have a price shock when you’re planning on a certain purchase price and now that’s going to go up three, four, $500 a month."
Pozek said around 300 customers used to reach out a month. That’s been cut down to around 175.
"People that are looking to sell that expected 10,15, 20 offers on their house, are like wait a minute, I thought this was a seller’s market."
Pozek said it still is, "Meaning that it might take a month to sell your house and that’s ok. What we were going through before just wasn’t healthy, so it’s re-educating our clients."