LINCOLN, Neb. (KLKN) – Gas prices are high, groceries are more expensive and if you want to buy a house, you’ll have to pay more interest on your mortgage.
According Freddie MacMortgage rates are at their highest since November 2008.
“We’ve been used to low interest rates for so long,” says Brad Hulse, owner of local real estate agency The 1867 Collective. “But now, when we’re talking about going from 4% to almost 6%, that’s a significant dollar amount for people.”
A potential silver lining of the housing market cooling is that it could mean more homes for sale.
“We’ve been in a market where we’ve had virtually no homes for sale for so long,” Hulse said. “This rise in interest rates is going to help us grow and rebuild that inventory.”
According to Great Plains Multi-Listing Regional ServiceLincoln housing inventory increased 9.7% for new homes and 8.6% for existing homes year-over-year.
What does this mean for property values? Could they bathe?
“I wouldn’t say they would necessarily dip as much as their appreciation rates would slow,” Hulse said.
Hulse explained that appreciation rates have been between 10% and 15% over the past five years or so.
Due to rising mortgage rates and a slowing housing market, he estimates that appreciation rates will be between 5% and 10% going forward.
“It’s going to slow down, but it’s definitely not going in a negative direction,” Hulse said.