AMARILLO, Texas (KAMR/KCIT) — Heads up Amarillo, if you’re looking to buy a house, you definitely want to pay attention to the latest actions from the federal reserve.
“The buying power of buyers has decreased over the past few months due to increased interest rates,” said Jessica Martin, a realtor for RockOne Realty Group in Amarillo.
But, she explains, that’s not necessarily a bad thing.
“That does in no way means that we’re in a bad market. The average interest rates since 1971 was 7.76 (percent) interest. We’re in a normal market right now,” she added.
It’s more like a byproduct of a housing market returning to pre-pandemic levels.
“It’s actually changing. It’s actually, I can see it probably become more of a buyers’ market here after a while, so we’ve been touring houses are staying on the market longer, and you’re also seeing house prices drop,” Martin emphasized.
She said the current interest rate is 6.25% with points, and with interest rates going up, your mortgage rates will follow, as will your taxes.
“So, coming out of the period where rates were super low, it caused the value of the house to increase, which also increases the amount of taxes to the point that legislation has passed a bill for homeowners to alleviate some of that problem,” she noted.
Martin told us even though rates are ultimately rising, it’s not necessarily fattening landlords’ pockets.
“So, with the landlord’s taxes, of course that goes back on to the renter. So no, they’re not just being greedy, it’s just the taxes they’re having to pay,” she said.
So, how long is it expected to stay like this?
“I don’t think it’s a long term or short, short term issue. I think we’re finally just getting back to normal because we’ve been abnormal for the past couple of years,” she explained.
Setting up for a home sweet home.
For more information on the home buying process, including homeowners classes to walk you through the process, give Martin a call at 806-433-2133, or click here.