The impact of increasing mortgage rates

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MEMPHIS, Tenn. — If you drive around East Memphis, you’ll notice there are many homes for sale. Local realtors told WREG’s Stacy Jacobson Memphis is still a seller’s market.

A house like this is maybe just beyond Jordan Saslawsky`s needs.

“I actually bought a duplex.”

Still, the first-time home buyer said home ownership was a goal. It took him a year to find the right home, and hee made it final last week.

“I closed this past Thursday,” he said.

He locked in his mortgage rate at 3.5 percent just days before they pushed up to 4. Experts said the election caused the bump.

Other markets have reported home buyers are now dropping out, but Realtor Karen Soro said that’s not the case here.

“We have such a robust market, multiple offers are common. We have a low inventory. We`ve been in a sellers market for 8,9 months now.”

Soro said a half percent increase isn`t enough to change that.

“For every $100,000 you`d be financing, you`d pay $28 more per month,” Soro said. “Nobody has been the slightest bit upset or worried at all.”

In fact, 4 percent is actually a lot lower than rates 10 years ago, she said.

Still Saslawsky is glad he found the perfect place and locked in at the perfect time.

“I guess I got lucky again cause as soon as I did rates started to go up. Got pretty lucky in that situation.”

The realtor we spoke with primarily works near Downtown Memphis, but out in East Memphis, we’ve spoke to people who have had more trouble selling their homes.

They told us it’s nothing new in the last week, but certainly the market seems a little hotter the closer you get to downtown.

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