RAPID CITY, SD (KEVN) – Continuing inflation and rising interest rates are putting increased pressure on those looking to buy a home.
In 2020 and 2021, interest rates have reached historically low levels. However, we have seen an upward trend this year, with mortgage rates currently hovering around 6%.
That’s double what potential buyers have seen in recent years.
Bonnie Spain, CEO of Consumer Credit Counseling of the Black Hills, says the housing market is determined by who participates in it, as well as factors such as inflation and government policy.
“As inflation rises, fewer people will be able to buy a home, so supply and demand definitely affect the industry, as do interest rates. In this regard, what the federal government does affects your wallet and your ability to buy a home.
Due to inflationary pressure and rising rates, many buyers are canceling all contracts.
However, some are still looking for options.
Spain says raising your credit score is essential.
“You need to do what you can to make your credit as good as possible, you need to improve your credit score. You also need to start saving for your down payment. You need to save as much as you can, as well as repay your debt, because the more debt you have, the less you will be entitled to, because everything works together.
She says your credit score can be improved by paying your bills on time and consulting professionals.
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