Actions

What Texans in the housing market can expect to see after rising interest rates

Housing
Posted at 11:11 PM, Jun 20, 2022
and last updated 2022-06-21 22:59:04-04

WACO, Texas — The rippling effects of inflation just continue to pile up. Now causing the highest interest rate increase in 29 years.

The federal reserves interest rate hike is supposed to return price stability in America but according to experts, so far it's doing the opposite.

This year alone, the Fed has hiked the interest rate three times.

”I think we’ve seen the biggest increase on almost everything gas prices, food, traveling, everything is going up, everything is increasing,” said Patrick Arryn, licensed realtor.

The hope is to level out rising inflation but according to license Realtor Patrick Arryn it's not helping the buyers in the housing market.

”One of the strategic plans put in place to slow it down but even with the increase of interest rates I haven't seen the market slow down,” added Arryn.

For residents questioning if the housing market could crash here is what a real estate investor David Greene has to say:

”The question on everyone's mind is will these interest rate hikes slow the market down so much that prices drop and unfortunately the only way that will happen is if it pushed enough buyers out of the market that the demand for the existing supply decreased and that’s not what we’re seeing,” said David Greene, real estate investor and host.

Local realtors say the demand remains high. Arryn adds it's more of a supply and demand issue than anything for desirable destinations like Texas.

“With so many people moving here from the east coast, west coast, California, Florida, New York. Even though interest rates are going up it’s not slowing down the amount of homes we need in Texas,” said Arryn.

With the numbers experts are seeing, federal reserve chairman Jerome Powell admitted this month there might be more increases to come.

”Clearly today’s 75 bases point increase is an unusually large one, I do not expect moves of this size to be common from the perspective of today either a 50 bases point or a 75 bases point increase seems most likely at our next meeting,” said Jerome Powell, federal reserve chairman.

Realtors say despite what the Fed does, they have yet to see the difference and don't expect to see much change soon.