CLEVELAND — Mortgage rates have continued to rise, affecting those in the hunt for a new home.
“We’re trying to find the perfect forever home,” said Jennifer Gilronan. They said they have been looking for a home for the last five years. For them, the most important thing is acreage.
The Gilronans have moved multiple times and said this time; they are keeping a close eye on the rising interest rates.
“It takes your top-of-the-line budget down because the mortgage rate will be more,” said Jennifer Gilronan.
This rise is something U.S. Mortgage Branch Manager Christian Foote said is affecting many new home buyers.
“It’s going to increase their monthly obligation for every percentage point that interest rates go up. It’s going to increase the monthly mortgage payment by about $60 per $100,000,” said Foote.
Foote explained the rising rates.
“What happened at the beginning of this year is that the government stopped buying mortgage-backed securities,” said Foote. “When they did that, it was kind of a knee-jerk reaction and we went up almost a full percentage point in January and February,” he continued “Since then, interest rates have risen almost a full 3%.”
Foote said we are hovering around a 6% interest rate and he said he can’t predict the future.
“All of the experts in the market are saying that we will probably see interest rates starting to come down Q1, Q2 of next year,” said Foote.
