Increased impact of interest rates on the Hinesville housing market

HINESVILLE Ga. (WTOC) – The Federal Reserve raised interest rates by three-quarters of a percentage point last week, marking the fourth increase of the year, which could impact mortgage rates and the market housing.

Realtor Jimmy Shanken says there’s always a need for housing in Hinesville, but recent trends are putting the buyer’s power back.

A four-bedroom house just hit the market two days ago and is ready to sell. However, Shanken says the days of receiving multiple offers within hours are over.

“We don’t see as many multiple offers as we used to. A few weeks ago the homes were on the markets for a few hours and we had several offers above the list price,” Shanken said.

While homes still sell quickly, Shanken says this slightly extends their time on the market. Sellers still get their asking price, but he says there’s a bit more wiggle room for buyers.

“With fewer offers in the market, buyers are able to negotiate some closing costs. I don’t think we’re back to the point where they get 100% of their closing costs, but they do get an incentive to buy a home,” Shanken said.

Let’s break down the numbers for this house. It’s on the market for $269,900 with 3% interest, which Shanken said was common a year ago. You would pay just over $1,100 per month.

Shanken calculated today’s interest rate on a VA loan, commonly used by Hinesville residents, with a rate of 4.7%. That would make your monthly mortgage just under $1,400.

“There will always be ups and downs in the market. But you don’t marry your fare, you marry your house. So find the house you love.

Shanken says it’s also a good idea to be pre-qualified for a home loan.

“Understand where you stand financially. You won’t go to the grocery store without knowing what’s in your checkbook. The same goes for buying a house. You wouldn’t buy a house or look for a house until you knew exactly what your buying power was.

If you have concerns about your interest rates, Shanken says the best thing to do is contact your lender.

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