ORLANDO, Fla. \u2014 In a move to try to tame inflation, the Federal Reserve voted Wednesday to boost its benchmark interest rate by 0.25%, its first increase in three years.<\/p>\n
Economists say mortgage interest rates tend to be influenced by the Fed\u2019s moves, and some lenders say that could boost 30-year fixed-rate mortgage rates.<\/p>\n
Jermaine Jones is house hunting. He lives in Lake Nona, but he said he is ready for a larger house in Lake Nona, Bella Collina or West Orange County.<\/p>\n
“My life has changed, and I\u2019ve outgrown it,” Jones said. “So now I want something that fits my current lifestyle.\u201d<\/p>\n
Jones said he has a 5% rate on his current mortgage.<\/p>\n
\u201cNot only are the interest rates going up, the prices are going up as well, too, since I\u2019ve purchased my house,” he said. “So I\u2019m gonna be looking at a much bigger payment.\u201d<\/p>\n
Ali Partovi of Partovi Funding LLC, who watches mortgage rates every day as a lender, said many homebuyers can expect to pay 7% interest on a 30-year fixed mortgage if they buy in the coming months. That would be up from a 14-month high of 6.76% that mortgage buyer Freddie Mac reported on Sept. 10.<\/p>\n
\u201cI believe probably for the rest of the year, we\u2019ll be in that same environment,” he said. “I don\u2019t think it will come down anytime soon, even next year.\u201d<\/p>\n
Although home buyers’ monthly mortgage payments will be higher, they might also score a deal buying their house in the coming months, Partovi said.<\/p>\n
\u201cIt (higher rate) also puts pressure on sellers because if buyers aren\u2019t making offers, or they\u2019re hesitant to buy, then they\u2019re gonna have to either reduce prices, offer more concessions or lower the price of the house so the buyer can afford to buy it,” he said.<\/p>\n
According to Orlando Regional Realtor Association President Chris Atwell, the median home price in Central Florida for August was just more than $400,000, down $2,500 from a year ago. Overall, home sales fell nearly 9% from July to August, he said.<\/p>\n
Atwell said Central Florida still has a healthy real estate market.<\/p>\n
“One that is maybe lollygagging a little bit, slowing down just a hair, but nothing to be panicked or really alarmed about,\u201d Atwell said.<\/p>\n
In the end, Jones said he is willing to pay more to live where he wants.<\/p>\n
\u201cMaybe the return on happiness will be greater than the loss on the money on the increased interest rate,\u201d he said.<\/p>\n
Realtors and lenders say if interest rates stay around 7%, buyers should plan their purchases months ahead of time.<\/p>\n
Partovi has three tips for people getting ready to buy a house.<\/p>\n
Purchase a home in the lower price range of what you can afford so you will have money for closing costs and furniture.
\nPay down debt to boost your credit score for a better loan interest rate.
\nHave a cash reserve for repairs and to make sure you don\u2019t miss any payments.<\/p>\n","protected":false},"excerpt":{"rendered":"ORLANDO, Fla. \u2014 In a move to try to tame inflation, the Federal Reserve voted Wednesday to boost…\n","protected":false},"author":2,"featured_media":402090,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[16022,2031,274,558,1644,2204,1337,115,139,141,140,278,2032,835],"class_list":["post-402089","post","type-post","status-publish","format-standard","has-post-thumbnail","category-orlando","tag-app-housing","tag-app-local-business","tag-app-top-stories","tag-business","tag-housing","tag-instagram-n13","tag-keith-landry","tag-news","tag-orlando","tag-orlando-headlines","tag-orlando-news","tag-top-stories","tag-trending-topics","tag-vod"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/402089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=402089"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/402089\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/402090"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=402089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=402089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=402089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}