SIOUX CITY, Iowa (KCAU) — Interest rates are on the rise after a recent announcement from the Federal Reserve. The Federal Reserve raised interest rates on loans by 0.75% this week.
Real estate experts have said that while rising interest rates will help slow inflation over the long term, this is currently a difficult situation for Siouxland residents, especially those trying to sell a property. home.
When Traci Kell put her house up for sale in early June, she didn’t think she would still be waiting for a buyer.
“The market has slowed down because when we first set it up houses were going away in a couple of days and now we’re on day eight,” Kell said.
She plans to move to Alabama and said the difficulty of buying her next home is just as difficult as selling her current home.
“It’s going to be a tight schedule to move into another house,” she said. “We might need to rent an apartment for a few months.”
Jason Geary is a real estate agent with Century 21 ProLink in Sioux City. He said the rate for a 30-year fixed mortgage will now be around 6%. He said the high rate was wreaking havoc in Siouxland.
“Even though the number of homes for sale is at an all-time low, buyers now have to pay a premium to get those homes and that’s affecting what they do,” Geary said. “So we’re starting to see the very first signs of a slight downturn in the Sioux City real estate market.”
Jared Noteboom is a mortgage loan officer at the Central Bank. He said the inflation trend is down slightly on top of gasoline and food prices, but only time will tell how those higher rates will impact Siouxland.
“With the recent increase, the Fed is also trying to rein in energy and food prices,” he said. “So that’s where we’re headed, now how fast we get there is still to be determined.”
Noteboom advises people to plan with their loan officer and realtor during this time. He said he doesn’t expect home prices to fall dramatically anytime soon.