NASHVILLE, Tenn. (WTVF) — If you are looking to buy a home, you may have noticed prices have not gotten any better, and experts do not expect them to any time soon.
The National Association of REALTORS said there is no quick fix for this problem caused by supply and demand is the problem. The supply of homes for sale is at a 25-year low.
There has been eleven interest rate hikes over the last year and a half which means mortgage rates went from a record low of about 2.5 percent in January 2021, to over 7 percent currently.
Luckily, the Federal Reserve Wednesday announced it will not hike it up again for now, but that does not mean another will not happen later this year.
Chief Financial Analyst for bankrate.com, Greg McBride, said too much of a drop in interest rates could cause other problems for the economy as well.
"The only way mortgage rates are gonna drop that significantly, is if the economy completely rolls over. well, in that environment, you know, unemployment is going up. That's not exactly the time when people would be looking to buy houses or be able to buy houses," said McBride.
Due to the current pause on interest rate hikes, experts said if you are really looking for a house, now might be the best time because rates are likely to continue going up later this year and into next year.
