Local real estate agent weighs in on the housing market after the Fed hikes interest rates

ST. LOUIS – Last week the Federal Reserve announced another hike in interest rates to fight inflation.

FOX 2 sat down with real estate agent Becky DeMond, a real estate agent and team leader for RE/MAX Preferred in Swansea, Illinois, to find out what this means if you’re looking to buy a new home in the New Year.

“We definitely still have a housing shortage, even if the rate is high,” DeMond said.

For the seventh time since March, the Fed has made it more expensive to borrow as it remains focused on fighting inflation. According to DeMond, prices are beginning to stabilize as a result.

“They don’t go up, but they stay the same,” she said. “We believe prices in the housing market will remain high.”

On Wednesday, December 14th, the Fed increased interest rates by another 0.5%. In January it was 0.08%, but now it’s 4.5%.

For homeowners, this means that if you take out a $300,000 30-year fixed-term mortgage, you’re now paying about $500 more a month than you did at the beginning of the year. This is simply due to the higher borrowing costs.

Jim Diehl has lived in Creve Coeur for decades and wanted to share some words of wisdom with those who may be stressed about the current housing market.

“Things are getting better,” he said. “The way petrol was so high here a few months ago, it’s cheaper than it was a year ago, so we can’t panic. It’s tough for families not to be able to do what they want and especially at this time of year being strapped with household expenses and all. But I hope and pray things will change and I think they will.”

With his mortgage paid off, Diehl has no plans to move anytime soon, but if you’re looking to buy a new home in the new year, it’s still a good time for sellers and buyers, according to DeMond.

“I would say still buy but stay conservative,” she said. “Hope the rate goes down so you can refinance in the future.”

https://fox2now.com/news/missouri/local-real-estate-agent-weighs-in-on-housing-market-after-fed-hikes-interest-rates/ Local real estate agent weighs in on the housing market after the Fed hikes interest rates

Sarah Y. Kim

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