BENTONVILLE, Ark. (KNWA/KFTA) — Economists say mortgage rates across the country have increased from 3% to 8% in only two years.
“A lot of folks are really concerned about just the economy in general and the way things are going to continue to go,” said Ian Weiner, a financial planner.
Weiner is the owner of Bespoke Wealth Solution in Bentonville. He was also a realtor in Kansas City. He says having a background in realty helps him with financial planning.
“One of the things my clients really appreciate working with me is that I take a really comprehensive view to finances. We look at it as their total balance sheet,” said Weiner.
However, it’s difficult to help people wanting to buy at home right now since mortgage rates have increased at such a rapid rate.
“We have seen the fastest rate hikes since tracking them. This has been an aggressive move to try to curve inflation,” said Weiner.
The rate hike is making it difficult for first time home buyers.
“We are seeing a lot of folks who, in years past, would be candidates of first-time home buyers or younger home buyers that are choosing to rent,” said Weiner.
The high mortgage rates aren’t only impacting the young generation.
The other challenge is folks that are in the retiree phase and are considering downsizing, or ‘rightsizing,’ as we call it,” said Weiner. “A lot of people have a locked in mortgage that is 2.5% or 3%.”
According to economist Jeff Cooperstein, there’s a chance the prices of housing will go down in Northwest Arkansas in the next few years. However, there’s a big caveat that could lessen that impact.
“Because demand is so strong in Northwest Arkansas, you can’t really expect for us to see the bottom fall out like it did in 2007 and 2008,” said Cooperstein.
Weinter says when looking to buy a home, buyers shouldn’t rush into it, but also not be afraid of it.