HOUSTON – Sikiru Ogunboyejo has been a real estate agent for eight years.
He says he has seen significant swings in interest rates during his time at work.
“When COVID started, interest rates were, I wouldn’t say historically low, but lower than they usually have been,” Ogunboyejo said.
At the height of the pandemic, Ogunboyejo says interest rates hovered around 2.7%.
“It was moving. A lot of buyers were able to buy, get that low interest rate at a good price,” he added.
Now, facing historic inflation, they are around 6%, April Khaliq who is trying to buy a house knows this first hand.
“Last year was a bit difficult because of the market. It really started to be difficult at that point, and we’re just starting to see some really good prospects,” she said.
Ogunboyejo says high interest rates could start working in favor of the buyer as they force sellers to lower their prices.
“What buyers are thinking right now is that they’re either going to wait for interest rates to come down or try to work out a deal, so if that 350 house goes down to, say, 300 or 280. .. that’s when they’ll go ahead and buy it,” he said.
He says first-time home buyers have a particular advantage because of programs that can let you dodge a down payment.
“And then they also have grants,” he said.
While Ogunboyejo says it’s not possible to say exactly how high interest rates will go, he predicts house prices will continue to fall over the next few months.
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