High interest rates dampen Triangle housing market, but some deals are still available

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Saturday, October 7, 2023
High interest rates dampen Triangle housing market
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With mortgage rates climbing to their highest point in more than 20 years, many prospective home buyers are re-evaluating their plans.

CARY, N.C. (WTVD) -- Mortgage rates are soaring and many experts worry what those rate hikes will mean for affordability housing.

Daniel Teachey graduated from NC Central in May and is now holding down two jobs.

"I work at EMS and YMCA. Both aren't paying what the cost of living is," he said.

He can't afford to rent his own place and plans on getting an apartment with friends to move out of his parents' home.

"One bedrooms are like $1,500 now, so it's definitely up there," Teachey said.

September data from Zillow shows the median rent for a two-bedroom home in Raleigh is $1,600. Buying can be even harder than renting for many people.

SEE ALSO | Median real estate prices in Wake County decline $5,000, but remain historically high

"Everything is so gosh darn expensive," one real estate professional said.

Mortgage rates climbed to the highest level in 23 years.

Home loan applications fell to the lowest level since 1995 last week, according to the Mortgage Bankers Association.

Compass Realtor Danni Dichito works with a lot of first-time home buyers and many are pressing the pause button.

"They've said 'You know what, I'm not being qualified and getting qualified for what I want in a home,' so they're waiting. The payments are too, too much," said Dichito.

She said new construction is still a good option mostly because builders are motivated to move inventory.

Some companies are offering price reductions or low financing.

"Buyers are able to get a really awesome interest rate that we haven't seen in over a year's time," Dichito said.

Areas like Cary remain hot in this market and $1M+ homes are selling within days of hitting the market, according to Dichito.