TULSA, Okla. — Buying a house can seem almost impossible these days, especially with low inventory and rising prices—-now mortgage rates are rising.
Spring and summer are prime times for the housing market. But, with the market still hot, actually finding a home to buy isn't easy.
“It has been difficult," said Allen Thurman. "Everything’s gone in a day.”
Thurman is on the search for a new home. He’s been looking for about a month. So far, he’s put in one offer $10,000 over the asking price. And it still wasn’t enough.
“It’s such a big decision that you’re making," Thurman said. "You’re spending so much money, it’s such a big purchase. And, you know, when you don’t even have, you don’t even get to sleep on it for a night, that’s just the hardest part.”
Thurman’s been working with Tulsa realtor Tiffany Johnson. She said inventory is still low and when a house does become available, it’s typically on the market for only a couple of days.
“I have not seen anything like this before," Johnson said. "I’ve been doing this nine years and it’s very busy. It’s a whole different market than what we’re used to.”
She said housing prices are increasing about 30 percent. Many buyers come from states such as California, New York and Colorado.
Because you have to make such a quick decision, Johnson said she’s seeing buyers back out after putting in an offer.
“They’re coming in and offering all of this amazing, you know, appraisal gaps and as is, and then they just freak out and back out because they think they’re making decisions so fast and they’re paying way more than they plan to and then they just back out and you start back over," Johnson said.
As the housing market continues to stay competitive, mortgage rates are increasing. They're currently at about five percent for a 30-year mortgage.
Josh DeBoer, owner and broker at Mortgage Partners, said that rate is rising faster than many expected. He said it's mostly due to inflation the pandemic and even the war in Ukraine.
“As rates go up, your affordability decreases," DeBoer said. "Your purchasing power decreases.”
There is a bright side to rates going up, a chance for the market to slow down.
“I guess the positive thing is that as, in the second or third quarter, we’re anticipating, as rates go up, there will be less buyers, less offers," DeBoer said.
If you’re looking to buy a house, DeBoer suggests talking to your mortgage broker and lender about locking in a rate now. He said you can lock it in for up to 180 days.
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