Higher mortgage rates could put additional pressure on some Lincoln homebuyers, particularly those already in the process of looking for a home.
The average rate on a 30-year fixed mortgage reached 6.95% on Sept. 17, up from 6.76% a week earlier, according to Freddie Mac.
Russ Meyer, an associate broker with Nebraska Realty, told KLIN News buyers already looking for a home can feel changes in mortgage rates quickly, particularly if they have not locked in a rate with their lender. “Buyers that are already in a pipeline of looking at houses sometimes can feel the squeeze,” Meyer said. “We hope that they’ve had their interest rates locked in, although buyers that don’t have their interest rates locked in with their lender, they may feel that squeeze where they see that their interest rate they were able to lock in will cost them a little bit more to purchase a home.”
Meyer said buyers should pay particular attention to the monthly payment they can comfortably afford rather than focusing exclusively on the mortgage rate. “I think the most important thing that a buyer would need to concentrate on is what they’re comfortable with in their monthly payment,” Meyer said. “And I wouldn’t pay too much attention to the rate.”
Meyer said Lincoln currently has homes available across a range of price points and expects there could be some initial hesitation among buyers in response to higher rates. “Lincoln has really great inventory in all different price points,” Meyer said. “I think there’ll be a little bit of a knee-jerk reaction with a higher interest rate.”
Meyer said having more homes on the market gives buyers more choices as they consider what they can afford and whether the time is right for them to purchase a home.