Home ownership is often considered the American dream, but high interest rates and limited supply are making that dream even harder to attain.
SUMTER, S.C. — America’s hot housing market may be seeing a cool down, as efforts to curb inflation drive prices up.
Last month, the Federal Reserve imposed its largest hike on interest rates in nearly three decades.
One effect of that decision was higher home costs with the goal of reducing demand.
“With the interest rate creeping up on us… it’s slowed us down some,” Vince Watkins, a Realtor in Sumter, said. “We still have an issue with supply and demand, so that plays a part too.”
Borrowing costs have risen sharply with the average 30-year fixed mortgage rate topping six percent, according to finance analyst Bankrate.
That’s the highest level since the 2008 financial crisis.
Watkins says the current market has a silver lining for those who can afford it.
“You have more of an opportunity and a chance to get something where before this it was more of a dog fight,” he said.
Others may be left without, as options for affordable homes become even more scarce.
“With the prices up and the interest rates up right now, it does eliminate some people from buying,” Watkin said, “your monthly payments and stuff like that being so much more now.”
Speaking to a lender about options can be a good first step, according to Watkins. The S.C. Housing Finance and Development Authority also offers resources to help potential home buyers navigate the process.
Those resources can be found at SCHousing.com.