Interest rates are on the rise throughout the United States, and the trend is expected to have an affect in the Twin Lakes Area. According to a report earlier this month from CNBC, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 4.9%. One year ago, that rate was 3.36%.
Nosari Home Mortgage founder and mortgage lender Chris Nosari says the rates are going to continue the climb.
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Anstaff Bank loan officer Eric Lunnen tells KTLO, Classic Hits and The Boot News the rise in interest rates is a response to inflation. He says with this move, the Federal Reserve is attempting to “cool down” the economy reign in the inflation Americans are experiencing.
At this point, Lunnen says it’s too early to tell what effect the increases have on area residents seeking bank loans.
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Nosari says his company is currently not seeing any effect. With low inventories, Nosari Home Mortgage’s volumes are staying up, but a slowdown is anticipated as the year continues.
Even though the inventories are low, Nosari says now is the time to buy.
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Lunnen’s advice to area residents is to avoid variable rate debt.
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Lunnen adds for anyone in the market for a home or a vehicle, it’s best to get the loan as soon as possible and get a fixed rate locked in before interest rates continue to climb.
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