Mortgage rates back to pre-pandemic highs in metro Atlanta
ATLANTA, Ga. (CBS46) - The ultra-low mortgage interest rates is over. The Federal Reserve is raising rates for the first time since 2018. Fixed mortgage rates climbed over four-percent this week, and they could continue to rise over the course of the year.
“I feel like real estate is probably one of the best areas to invest in,” said Jibre Hordges, who is looking to buy a home.
Hordges has been on the hunt to buy a home for a few weeks.
“I’ve seen probably about two or three homes. I’m trying to devise a nice list, so we can hit it up one by one,” said Hordges.
But with mortgage rates going up, it’s a different ball game.
“With the market being the way it is, I don’t want too specific. Because with me buying a house it’ll take a much longer time,” said Hordges.
It’s competitive out there, with so many people bidding over the asking price. But will the trend stay?
The average 30-year fixed mortgage rate is now about 4.16%, according to Freedie Mac. That’s higher than the 2.65% or so average that it was at back in January 2021.
“I think it’s stabilizing back to where it was pre-pandemic,” said Ashley Johnson, realtor for Bleu Real Estate
A percentage point or two may not seem like a lot, but take for example a $500,000 home, at a 30-year mortgage rate. The difference in payment is about $2000 back when the rate was 2.65% compared to the $2400-plus you’ll have to pay every month now at the new rates. All of that adds up.
“I think people are getting a little discouraged - with mortgage rates. But then again this is where things where prior to the pandemic, so we’re just kind of seeing it evening out,” said Johnson.
But even so, the hope for some is to scoop up something up nearby, before it’s too late.
“Atlanta is for sure number one. Just because it’s home,” said Hordges.
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