LAS VEGAS (KTNV) — A little over a month ago, we reported mortgage rates were dropping, but on Wednesday, housing experts tell me that will no longer be the case.
WATCH | So, what does this mean for homebuyers?
Rates are once again on the rise and could impact your ability to buy a home in the valley.
“Is right now the right time to buy? I think it’s human to think that way," said Jennifer Wolf, who is searching for a new home in Las Vegas. She has been a Las Vegas local since 1995 and is currently looking to move with her family.
“I have my family which consists of myself, my husband, we have five beautiful children aging from 17 to two years old—so much fun—so, we need a lot of space for our family and my two dogs," Wolf said.
But she isn't just buying a home. She's also selling the one they're currently in.
“It’s really challenging right now to understand because you know I’ve got to kind of weigh the person who is buying my home but also myself as the seller but also myself as the buyer," said Wolf.
Wolf keeps a close eye on prices and mortgage rates, worried she might be priced out of some homes she's interested in, if rates climb higher.
West Coast Mortgage Group Vice President Andrew Leavitt says the concern is real because those rates are going up.
“For your average conventional borrower right now you’re up in the upper 6's, for government which is FHA VA you’re going to be into the lower 6's. As we get into tomorrow and later into the week, you’re going to see your conventional rates in the lower 7's and the government rates in the mid to high 6's," Leavitt said.
Will there be any relief soon?
“For the next couple of weeks we’re probably on our way back up," Leavitt said. “Right now everything looks, like what we say in the financial markets, bare.”
Leavitt says each percentage point represents hundreds of dollars per month depending on the price of the home, a change Wolf is already seeing and compensating for.
“$20,000 to $25,000 in purchase price that we needed to dial back just to make sure we were keeping our budget in mind," Wolf said.
Leavitt says the rise in rates is linked to tariffs, economic uncertainty, the federal reserve and much more.
He says the upside is buyers have more negotiating power now than in the past few years and can demand incentives like closing costs from seller, which was almost nonexistent until six months ago.
Housing experts tell me despite the uncertainty and higher rates, they expect home prices will continue to go up, saying if you can afford to buy now to do so and re-finance later.
