'Time is now' for people looking to buy a home, Triangle realtor says

DeJuan Hoggard Image
Monday, January 9, 2023
'Time is now' for people looking to buy a home, Triangle realtor says
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Just over a week into the new year and some economic experts are already predicting the Fed will make another rate hike.

RALEIGH, N.C. (WTVD) -- Just over a week into the new year and some economic experts are already predicting Federal Reserve Chair Jerome Powell will once again raise interest rates as a way to scare investors into being more conservative.

If those predictions rang true, the hike would thus make it even more difficult for would-be homebuyers to be able to afford a home with interest rates more than double from their 2022 historic lows.

However, despite the outlook, Movil Realty's Otto Cedeno believes if you can find a way to make the homebuying process affordable, there's no better time than now.

SEE ALSO: How you can customize your mortgage rate for a better deal

"I think it's a better deal getting a lower price on a house and higher interest because you can always refinance later. You can't change the price of the house later," Cedeno said. "This is going to be the lifetime opportunity for people to get wealth."

Despite that optimism, Triangle MLS shows the average family income in the Triangle only reaches about 70% of the income needed in order to qualify for a median-priced home.

"I think government is going to start putting down payment assistance to bring the interest rate down," said Cedeno. "I think those programs will kick in, just like in 2011-12 where we had a lot of programs in the market for people who can't afford down payment or can't afford that interest rates."

SEE ALSO: Fed raises interest rate, expect added costs to be passed on to you

For homebuyers who are priced out from purchasing a home with cash or a conventional loan, FHA and VA loans have long been seen as a means to get into the market if cash is low.

"Those type of loans last year, they couldn't be able to get a house. Right now they are going to be able to get a house because sellers are taking every type of loan," said Cedeno.

For buyers who are unable to secure a conventional, FHA, or VA loan and don't have liquid cash; Cedeno suggests holding off until perhaps later in 2023.

"Maybe in the next 6 to 12 months where we can we can have people having an affordable home in Raleigh-Durham," he said. "I mean we're headed that direction."