LAS VEGAS (KLAS)– As The Federal Reserve announced another interest rate hike Wednesday, 8 News Now spoke with an expert to see what this will mean for buyers and sellers in our local housing market.
Christopher Haraway is selling his home, and he’s optimistic about the future, even as things continue to change.
“Today is the first day we’ve shown it,” Haraway said about his home. “I’ve owned a couple properties in Vegas, I’ve owned them at different times.”
The latest interest rate hike of .75% is the second in months, which has many in Las Vegas wondering what this means for them.
“It’s calming down for a sellers’ market,” said Dawn Houlf of EXIT Realty Number One. “And we have a little inventory.”
Houlf told 8 News Now the move is meant to curb record-high inflation, but it can mean a change in what kind of homes most are able to buy.
A higher interest rate means a bigger monthly payment, which can require putting more money down at closing.
“If someone qualified for a $500,000 house at a four percent interest rate, and it went up to five percent,” Houlf explained. “They would lose about 10 to 20 percent in buying power.”
However, Houlf said this is all about perspective, while another spike may seem scary, the numbers are still a lot lower than we’ve seen in past years.
As for Haraway, he said he will continue to look forward to all our local market has to offer.
“Vegas is going to be fine,” Haraway concluded. “That doesn’t bother me.”
Houlf said it’s also important to account for a rise in credit card, student loans and HELOC loan payments as interest rates spike.