First-time home buyers feeling the impact of rise in mortgage rates
Rates increased by 1 percentage point
Last Updated: 151 days ago
POWAY, Calif. - About a month ago, realtors say a two bedroom, two bathroom condo in Poway could have been a reasonable get for a first-time homebuyer with a minimum selling price of $399,000. But within the last 30 days, the mortgage rate has increased by 1 percentage point, making it more difficult to qualify for loans and costing buyers more.
Angela Ordway, who is with the San Diego Association of Realtors, told 10News,"For every quarter percent that your interest rate goes up, that basically costs over $100. So if your interest rate goes up a whole percent on a month that might mean an increased payment of almost up to $400."
A limited number of homes and condos are for sale in the county. In Poway alone, Ordway says there are only three condos that are currently available for sale.
It is frustrating for Christopher Shean, who is trying to sell one of those condos. He is trying to get out as soon as possible so he can take care of his father. The condo has been on the market for a month and they have had 20 showings, but not much luck.
Ordway says there is not an immediate relief in sight for sellers or buyers as the interest rate increases, decreasing the number of people who can afford these homes.
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