LAS VEGAS (KLAS)– As the Federal Reserve announced yet another interest rate hike Wednesday, 8 News Now spoke with an expert about what this means for new home developments and the expansion of Southern Nevada. 

Bernard Barbilla is in the market for a new home. He told 8 News Now he and his wife are trying to build from the ground up.

“Not only are you trying to find the perfect home,” Barbilla explained, “but at the same time, you are trying to find it in a timely way.”

He said they have had to switch their strategy as the market changes. 

On Wednesday, the Federal Reserve made an announcement for its sixth interest rate increase of 2022, bringing the average fixed, 30-year mortgage to about 7.3 percent. 

So, what does this mean for new home developments? 

“As far as the new home construction selling,” Brian Almero, Vice President of Highlands Residential Mortgage said. “There is still a lot of activity.”

Almero told 8 News Now while things have slowed slightly on the new construction front, buyers from California are still adding to our local expansion, with more than 223 new projects in the works. 

“Their home prices there are a lot more than what we have here,” Almero said of out-of-state buyers, “So for them, they think it’s a bargain.”

However, higher payments are still a struggle for many buying locally, with some backing out of contracts. Therefore, Almero recommends locking in an interest rate as quickly as possible. 

While many lenders only allow locks approximately 60 days before closing, he said some programs offer long-term options with a fee. 

“Hopefully when it’s all said and done,” Barbilla said of his journey. “We will be in the right place where we need to be.”

Almero said because the market has shifted, home builders are now offering incentives for buyers, which can help offset closing costs or other expenses.