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With mortgage rates at the highest levels since pre-pandemic, what impact is this having on the BR housing market?

BATON ROUGE, La. (WAFB) — If you’re looking for a home, you really don’t have much choice.

In addition, mortgage rates are at their highest since March 2020.

So should we be worried?

Sometimes you can’t resist the urge to see what’s going on real estate, but now your future forever home may not be there at all.

“It’s a seller’s market right now, which indicates low inventory. And that’s the supply and demand chain,” said Scott Gaspard with the Gaspard team at RE/MAX First.

As rent prices skyrocket and more people look to move into something permanent, you might notice one thing in the Greater Baton Rouge area.

“The average house price has definitely gone up,” Scott Gaspard said.

Mortgage rates are at their highest since before the pandemic.

According to Freddie Mac Mortgage Company:

– The 30-year fixed rate mortgage averaged 3.45% with an average of 0.7 points for the week ending January 13, 2022, up from last week when it averaged 0.7 points 3.22%. A year ago at this time, the 30-year FRM averaged 2.79%.

– The 15-year fixed rate mortgage averaged 2.62% with an average of 0.7 points, up from last week when it averaged 2.43%. A year ago at this time, the 15-year FRM averaged 2.23%.

– The 5-year Treasury-indexed hybrid variable rate mortgage (ARM) averaged 2.57% with an average of 0.3 points, up from last week when it averaged 2 .41%. A year ago at this time, the 5-year ARM averaged 3.12%.

“My opinion is that if they go over 5% or something outside of what we’ve had for a few years, it can cause a break,” Gaspard said.

“I would say right now, don’t buy in fear that rates will go up, and that’s the end of the real estate market,” Ryan Larussa said with GMFS mortgage.

Larussa says that while demand for buying a home is currently very high, rates are still good.

“In 2008, the rates were 6%, believe it or not. When I got into the business 20 years ago, you were talking about 7.5%, 8% rates,” he said.

Even with everything going on in the housing market right now, believe it or not, a new article from Forbes ranked Baton Rouge in the top 15 cheapest places to live in the country.

“There are a lot of areas where you see very affordable housing for the most part,” Larussa said.

Experts say that if you’re currently house hunting, don’t let the slight change in mortgage rates scare you away.

“The rate factor of even a half percent year-over-year increase isn’t going to be the reason you don’t buy. That’s what I would tell you,” Larussa said.

Be sure to talk with your family, work out the numbers, and really see what fits your short-term and long-term budget.

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