LEXINGTON, Ky. — Mortgage rates rose again recently following three weeks of declines after peaking at the beginning of June.

What You Need To Know

  • Mortgage rates rose again Thursday to 6.71% for a 30 year fixed mortgage 

  • Rates have not been under 5% since Aug. 2022

  • Middle home buyers have been more hesitant to make a move up 

  • Homeowners who want to downsize are seeing their homes being worth more

Rates are constantly changing, with rates not under 5% since Aug. 2022.

Freddie Mac said on Thursday, interest rates for a 30 year fixed mortgage rose modestly to 6.71%. Lexington realtor, Nick Ratliff said mortgage rates go up and down constantly.

“We’re seeing them change constantly. It’s a rollercoaster,” Ratliff said.

Ratliff said despite rates the highest they’ve been in nearly a year and increased home costs, Lexington’s housing market is in high demand with lower supply. He says a typical house in Lexington sells in six days with about three weeks of inventory.

“Right now, if no other homes hit the market in Lexington; in three weeks we’d have nothing to buy. It’s based on average sales versus what the inventory is. A healthy market would allow you to have about 4-6 months,” Ratliff said.

Increasing home values and higher interest rates are affecting different buyers uniquely. Middle ground buyers have been more hesitant to make a move up.

“Let’s say pre-COVID you bought a house or even during COVID for $200-250K, your first or second home you got this amazing 3% interest rate and now you’re having a kid and you don’t have to move but you’d like to have a little more space but now there’s sticker shock,” Ratliff said.

Ratliff says this market is posing a unique opportunity for older couples looking to downsize.

“So if you’ve had the house and the family and you’ve been there for 15 years all of a sudden your house is worth $700-800K, you could probably sell it have enough equity to be a cash buyer in the $200-400 range,” Ratliff said.

With buyers having to pay more for home to meet their needs, it means they’re going to want it to be move-in ready.

“If you have a house around $500K, we’re going to make sure it presents as well as possible whereas we may not have painted a wall last year, we may look to do it this year because you need to standout,” Ratliff said.

Interest rates were the lowest point for 2023 at the beginning of February.

More raises could come this year as the Fed has warned it could still raise interest rates two more times this year to battle against inflation.

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