Long-term mortgage rates are above 7 percent, for the first time since 2002.
The pandemic marked record lows for mortgages in 2020 and 2021, and the 30-year mortgage rate a year ago was 3-point-09 percent.
National numbers match what Indiana realtors are seeing, and that affects how quickly houses are selling.
Shawn Faye is the Southern Indiana Realtor Association president-elect. He said higher mortgage rates affect people’s buying power and what they’re able to spend. If you do buy now, Faye recommends staying in the house for at least five years.
“Don't be afraid, seven percent is not terrible," Faye said. "It may seem like a big number and it kind of is compared to what it was. But still, there's a chance you might be able to refinance and pay down, or pay it off early.”
Faye added we’re still below the 51-year average, which is 7.76 percent.
In 1981, the 30-year mortgage rate was 16.6 percent.
Chris Watts with the Indiana Association of Realtors said rates are higher amid general economic uncertainty. But other conditions also influence the market.
“Indiana was in the top 20 in population growth last year," Watts said. "But we've also had a pretty significant decline taking place really over the last decade in housing supply."
Watts said places with stronger job markets and other factors that influence the economy end up influencing home sales too.
The National Realtor Association reports that September was the fourth straight month pending home sales dropped. September’s rate for pending home sales in the Midwest was 80.7 percent, compared to March with 94..5 percent.