- Realtor Amy Kruizenga predicts what interest rates may look like next year.
- Kruizenga says during election years, the market is quiet.
- Video shows one neighbor discussing how she believes if interest rates go down, chances of affording a home is higher.
(The following is a transcription of the full broadcast story)
Now that the election is over, what’s next for the housing market? I’m reconnecting with a realtor in Mason whom I spoke with a few months ago. She’s giving me the latest update.
"I'm a full-time student, and I work full-time," said Kelsi Parker.
Twenty-three-year-old Kelsi Parker hopes to one day own a home. That day might not be as close as she’d hope.
"Because of how high they are right now; I can't even predict a day or a year when I’d be able to buy a house," said Parker.
Given the current market, the timeline is measured in years, not weeks or months.
"I'm probably picturing 10 years or so," said Parker.
Amy Kruizenga of Vision Realty in Mason says just a few months ago, interest rates were around 6%.
"Typically, in the past, they’ve dropped down. This year, they dropped and went back up a little bit," said Kruizenga.
She says that right now, some buyers are waiting for lower interest rates, which has made the market more stagnant.
"Homes are sitting on the market a little bit longer," said Kruizenga.
This slowdown has sellers holding back too, as fewer potential buyers mean less competition.
"I do believe it will get better for them."
President-elect Donald Trump talked about increasing housing availability during his campaign, possibly by building on federal lands or adjusting policies around immigration. Experts say it’s hard to tell what impact Trump’s policies will have on interest rates.
Kruizenga’s best guess is that rates will drop within the next year.
"Interest rates could be in the four to five percent range, but I’ve also heard predictions they might stay higher, around five to six percent," said Kruizenga.
For neighbor Kelsi Parker, she’s hoping for a sooner timeline.
"I'm hoping sooner. Especially if interest rates drop. That'll help so much," said Parker.
