What does the interest rate hike mean for Las Vegas homebuyers?

What does the interest rate hike mean for Las Vegas homebuyers?

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LAS VEGAS (KLAS) — The Federal Reserve’s announcement Wednesday that it would raise interest rates by three-quarters of a percent is not only the largest hike in 28 years, but it also means less buying power for consumers, especially those looking to buy a home.

Roszettie Gutierrez-Uy told 8 News Now she was getting ready to buy a house, but the changes will mean she can’t get what she initially hoped for.

“I’m in the market for a house right now,” she said. “I’m worried about the interest rates, I wish I would have bought sooner. Now it’s crunch time for me. I don’t want to wait any longer, it will be a $200 to $400 difference in my monthly payment.”

In an effort to cool the economy, the rate was adjusted and gives consumers less buying power when looking for a home.

“A few months ago, they were able to get a 3% and today it is about 6%, or approaching 6%, so they can’t get as much as they could afford,” said principal with Applied Analysis Brian Gordon.

The economy expert said we have seen multiple hikes this year, and this could play a role in home prices and rent prices going forward.

“The reality of it is it’s higher than it was, and for many people that may make the difference for people looking to get into their first home,” Gordon continued.

Gutierrez-Uy said that being in real estate herself, she thinks it’s a good time to move forward when comparing to the changing rental market.

“At the end of the day, rent is 100% interest, and when it spikes, you can’t guarantee it won’t change,” she said.

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