A new homeowner who takes out a 30-year mortgage will likely pay $50 a month more now than he/she would have at this time last year.
Capital Area Association of Realtors President Steve Myers says that could be one reason home sales increased last month when compared to April 2013.
“As interest rates begin to tick up, it has a triggering effect on families and individuals that look for new homes,” Myers says.
National interest rates for a 30-year fixed rate mortgage last month were averaging 4.34 percent, compared to an average of 3.45 percent in April of last year.
April home sales in the Springfield area were up 3.8 percent when compared to April 2013, but are down overall for the year so far. Median home sale prices were also up last month when compared with 2013 — a total of 4.5 percent. The numbers for the year so far, however, are down 1.8 percent.
Myers says the numbers aren’t great for the year so far because of the harsh winter.
“There was pent up demand that’s now blooming in buying real estate, that started in April,” Myers says. “We look for it to continue into the summer.”