LAS VEGAS (KLAS) – The Federal Reserve’s announcement on Wednesday that it would raise interest rates by three-quarters of a percent is not only the biggest hike in 28 years, but it also means less power to d buying for consumers, especially those looking to buy a home.
Roszettie Gutierrez-Uy told 8 News Now that she is preparing to buy a house, but the changes will mean she won’t be able to get what she initially hoped for.
“I’m in the market for a house right now,” she said. “I’m worried about interest rates, I wish I had bought sooner. Now is the critical moment for me. I don’t want to wait any longer, it will be a difference of $200 to $400 in my monthly payment.
In an effort to cool the economy, the rate has been adjusted and reduces consumers’ purchasing power when looking for a home.
“A few months ago they could get 3% and today it’s around 6%, or close to 6%, so they can’t get as much as they could afford,” said Brian Gordon, director of Applied Analysis.
The economics expert said we have seen several increases this year, and this could play a role in house prices and rental prices in the future.
“The reality is that it’s higher than it was, and for many people that can make the difference for people looking to move into their first home,” Gordon continued.
Gutierrez-Uy said that being in real estate herself, she thinks now is a good time to move forward with the evolution of the rental market.
“At the end of the day, the rent is 100% interest, and when it skyrockets, you can’t guarantee it won’t change,” she said.