Local Financial Advisor, Realtor React To Latest Interest Rate Hike

It’s getting more expensive to borrow money as the Federal Reserve raises interest rates yet again.

Mortgage rates, car loans and even investment portfolios are all areas where you will really notice the latest quarter-percent raise.

Financial advisor Paul Hood says another road of rate hikes is designed to slow down supply and demand issues that lead to inflation. He says the increase is designed to turn off consumers from the idea of taking out a loan.

"By slowing the economy, making it more expensive to buy a car or house, they slow down demand which allows supply to catch back up,” said Hood.

As a realtor in the Tulsa area for years, Maria McManus points to programs like Tulsa Remote as a reason the housing market is increasing locally.

She said it is hard for supply to keep up, which creates competition for housing.

“That’s really what we’ve seen the last two years,” said McManus. “Really a high demand for housing and a lower inventory, so people are really feeling that true definition of what supply and demand is.”

McManus said the rising interest rates will likely lead to more headaches for homebuyers.

“Maybe the amount they once could afford when we had those lovely three percent, [or] two and a half percent rates has gone down so their purchasing power is really what’s decreased and gets impacted by those rates,” said McManus.

She knows most people in the market have to move for every day reasons like a new job or expanding your family.

Her advice for those looking to buy is to find a realtor who will learn about your specific situation and can help connect you to different lending programs, which could make things like your down payment more affordable.

Hood said a big role in whether future hikes happen depends on how the buyers respond and if demand stays up.