BAKERSFIELD, Calif. (KERO) \u2014 After years of elevated interest rates, there may finally be some relief on the horizon for hopeful home buyers. <\/p>\n
The American dream of home ownership is beginning to feel more attainable as mortgage rates slowly edge downward.<\/p>\n
For many residents in Bakersfield, however, that dream has felt distant for quite some time.<\/p>\n
\u201cWhen it comes to investing into a home, it feels like a distant dream more than a reality,\u201d said Luisa Guzman Gomez, a Bakersfield resident.<\/p>\n
Now in her thirties, Guzman Gomez once believed she would already own her dream home. Instead, rising costs and financial responsibilities have forced her to reassess her priorities.<\/p>\n
\u201cIt\u2019s a bit frustrating because right now, with expenses, I have to look at my day-to-day and make sure I can pay off my debt and that everything is covered for the next six months to a year,\u201d Guzman Gomez explained. \u201cBut when I\u2019m looking at a house, I\u2019m just like, wow this is a huge investment.\u201d<\/p>\n
According to the Bakersfield Crabtree Report, rising interest rates since 2023 have driven up mortgage costs across Kern County. <\/p>\n
As a result, homes have become harder to sell, slowing the local housing market.<\/p>\n
Realtor Kevin Oliver says the impact has been significant, especially since only about 30 percent of wages have kept pace with rising housing costs.<\/p>\n
\u201cPeople saw their payments instead of a $1,500 payment for a $300,000 house, that same payment now buys a $400,000 home,\u201d Oliver said.<\/p>\n
Despite the challenges, Oliver says the market is beginning to show signs of improvement. With the Federal Reserve pausing its interest rate cycle in late January to address ongoing inflation, optimism is growing.<\/p>\n
\u201cThe Fed held steady, but I think with our new Fed coming in, maybe by May they\u2019ll get more aggressive,\u201d Oliver said. \u201cI think we\u2019ll see interest rates coming down.\u201d<\/p>\n
For buyers like Guzman Gomez, that change can\u2019t come soon enough. <\/p>\n
She says affordability remains a major concern, even prompting her to consider options outside the country.<\/p>\n
\u201cIf I wanted a four-bedroom home with multiple bathrooms and enough space to work, I\u2019d have to look at the statistics and comparisons,\u201d she said. \u201cIt\u2019s quite cheaper for me to purchase a home down in Colombia.\u201d<\/p>\n
Housing experts say they\u2019re hopeful the market will pick up again by summer, a season that traditionally brings the highest number of buyers.<\/p>\n
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