Rising interest rates are taking their toll on the home buying binge in Washtenaw County. Officials with the Ann Arbor Board of Realtors say they’re seeing a reduced buyer demand - and expect July numbers will reflect a turnaround from a hot sellers' market.
The Fed’s decision to raise interest rates to tackle inflation has definitely had its impact in Washtenaw County, according to Ann Arbor Area Board of Realtors President Tracy Rose.
"Even homes in Ann Arbor, the market has slowed down a bit."
Doing the math, Rose says, someone buying a $400,000 home a couple months ago would be paying about $1,600 a month in their mortgage. Now, that same loan would cost them $2,600 a month. She says this explains the hesitancy to borrow.
"The sellers are seeing their houses stay on the market longer because there’s less demand than just a couple months ago."
So, she says housing prices may soon stop their rise in the Ann Arbor area and might actually flatten out.
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