BUFFALO, N.Y. (WKBW) — The Federal Reserve has raised its key interest rate several times this year to try and calm down inflation and consumer spending. Those factors have pushed the mortgage rate up and the demand to buy a new home down.
Now, with the average long-term mortgage rates topping 7 percent this week amid historic inflation and fears of a recession, Western New York still remains a good housing market for you.
"I would say it's calming. It wasn't what it is, you know, 8 months, but it's still definitely a seller's market," Jay Herlen, associate real estate broker with 716 Realty Group said.
His advice: don't let the rates scare you.
"Especially in Western New York. In Western New York area is a very unique pocket and Western New York right now is still so far below the national average in terms of average sale price," he added.
For North Buffalo, in the Hertel Avenue area, he said the average, single-family home is $240,000 compared to the national average which is $348,000.
When it comes to buying home, Herlen recommended moving quick.
"If you need to make a move, make a move," he said.
Amid the sky-high rates, 7 News also wants to help you explore some possible solutions. Herlen suggests staying educated.
"Definitely don't hold off of the market because of interest rates. I would say talk to your local lender, local real estate agent give you the best advice, give you all the current market data," he added
Steve Mendelsohn, a home lending leader with KeyBank mortgage, agreed saying knowledge is power when it comes to home-buying.
"When they come into the office and they're interested in purchasing a home whether they're a first-time buyer or they're looking at a purchasing a second home, whatever the case may be the variables always seem to change a little bit year to year," Mendelsohn said.
That is why he said it is all about helping his clients find the best plan designated for them, especially when it comes to saving up for your mortgage.
"Every month we'll provide - you know - we'll see their paychecks and we'll say every month you should be banking this and if you hold to this you'll have this by the end of a quarter," he added.
Bottom line, these experts say do your homework and know there are resources to help you.
