EL PASO, TX (KTSM) – The Federal Reserve raised interest rates by 0.75% for the second consecutive time on Wednesday.
The increase is having an impact on the housing industry. An El Paso mortgage lender advises buyers to not wait as he expects rates to continue rising.
While rates are higher than they were last year, Houghton says they are still lower than we’ve seen historically and that the El Paso housing market is still strong.
“We have a very strong market, the El Paso economy is good, were not like some of the other markets where you see a lot of fluctuation, it’s pretty steady, but eventually if the rates continue to go up that will push the demand down for sure,” said Houghton.
The Executive Vice President for the El Paso Association of Builders says interest rates recently were around one percent and three percent and now are around five to six percent. Adding that interest rates have been much higher in the past.
However, he reminds buyers to still be cautious about whether or not they can afford the home they are interested in with the current interest rates.
Interest loans, 30-year loans, could be affected as much as $200,000 over a 30 year period. So you have to take a look and say ok where’s my interest rate where do I feel comfortable and what can I afford and look at opportunities for getting a better rate if you can find it.Ray Adauto, Executive Vice President, El Paso Association of Builders
Adauto adds that while the demand in El Paso is still high the industry is still dealing with inventory issues and problems getting supplies to build home and workers to build them.
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