Home buyers struggle to purchase home as cost of mortgage increase significantly
FORT LAUDERDALE - The cost of a mortgage has gone up significantly in the past year and buyers like Ali Gilson have been looking for a home.
She wants to stop renting and take the plunge as a first-time homebuyer, but as interests continue to rise she worries about affording the mortgage
"Part of you wants to wait, but there's a fear they will keep going up so it's hard to gauge," Gibson said.
The cost of a mortgage has gone up significantly in the past year.
In 2022, you could get a 3.5% interest rate.
On a $500,000 loan with insurance and taxes, you would be paying about $2,845 per month.
Now at 6.5%, your mortgage rate would be nearly a thousand dollars more: $3,760 per month.
Realtor Julie Lurie said sellers have a hard time with this.
"Typical day-to-day buyers are on a salary and have a fixed income and they can't afford the higher interest in the long run," she said.
Mortgage loan officer Michele Smith said although you are paying more with the higher Interest rates, there is a silver lining.
"You can refinance, but you are securing a property where there isn't much land," she said.
In fact, Smith believes home values in South Florida will keep rising.
"Goldman came out with numbers. We will be up 10% on values which is shocking because of the supply and demand issue."
Realtor Julie Lurie says supply is getting better
"Developers are seeing that where you once could put one home, you can put three to four, and maximize value. People aren't going to stop coming to South Florida."