The Federal Reserve’s Interest Rate hike has caused Mortgage Rates to increase

Published: Sep. 21, 2022 at 10:12 PM EDT
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OCALA, Fla. (WCJB) - The Federal Reserve hiked interest rates again by three-quarters of a percentage point. That will affect your credit cards, car payments, and mortgage rates.

The federal interest rate now ranges from 3% to 3.25%, that’s the highest it’s been since early 2008. The rate for a 30-year fixed interest mortgage soared above 6% last week compared to last September when it was only 3%.

“It has pushed a lot of buyers out of the market that can’t afford with the rate this high, but there’s still a lot serious buyers that are out there,” said realtor Elisha Lopez.

In Ocala, home closures have gone down 3.4%, and in Gainesville, 3.2% compared to August of last year.

Randy and Theresa Rucker already sold their home and say they didn’t want to miss this opportunity as they did back in 2007-08.

“All of our neighbors sold their homes and made a profit and walked away and we were the only ones left in the neighborhood so we figured this time we’re going to capitalize on the market,” said Randy.

Lopez said with the mortgage rates going up there are not as many offers, but people are still wanting to buy homes.

“There were like 20 offers on a property now we’re seeing one offer. Properties are staying on the market a lot longer typically between three to four weeks before we’re getting an offer.”

But the Ruckers were able to sell their home in just 14 days and now they’re going to rent a property.

“We got a really good deal in comparison to the neighborhood everything has gone through the roof. I’ve seen rent for a two bedroom, two bath for sometimes $1500 to $1600 so it’s very expensive out there in the rental market.”

Lopez added that sellers are now having to pay closing costs again and fewer people are paying with cash and having to take out loans.

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