Interest rate increase affecting home buyers

The interest rate increase has had a major impact on decisions to buy houses here on the Coast.

Agents at Exit Prestige Luxury Realty say the biggest affect with interest rates is buying power which will hurt buyers when it comes to purchasing more homes.

The interest rates for most homes are now around six percent.

Broker Owner Tashia McGinn, who has been in real estate for 20 years, believes that this is still a good time to buy since the rates were as high as seven percent in the past and are expected to continue to increase. “Something else about our area versus other areas is that we’re still in deficit from Katrina as far as home. So, there’s still a lack of homes for people in Mississippi. When you take in the interest rate and the fact that we’re still in deficit and need housing and places to live, you’re not going to get that much of an issue with houses not being able to sell or sellers having to reduce significantly.”

For more information on home buying, grants, and programs to help with purchase, visit your local realtor.