How do interest rate impact the American Dream

Tyler Ryan learns about the rise of the interest rate's impact on buying and selling houses

[gtxvideo vid=’qephvji2′ thumb=’http://player.gtxcel.com/thumbs/qephvji2.jpg’ vtitle=’American Dream – the APR’]

COLUMBIA SC (WOLO)-“Motion causes emotion,” says SC Dream Home‘s Clay Vassey of the change in the interest rate on home loans.  Vassey’s reference to the recent one point increase in the rate, from 3.5 percent to 4.5 percent, in a very hot real estate market.  “There were about 3,000 new home builds last year,” he says, noting the geographical location of the Midlands to the ocean, mountains, and larger metropolitan areas as some of the interest in the area.

According to Vassey, there are nearly 4,000 homes on the market in the Midlands, with the median price $185,000.  The increase, says Vassey is “about $100 a month,” which is very little, considering that in the 1980’s the average APR was nearly 20 percent.

Vassey thinks that the interest rate increase will do very little to slow down the market for buyers or sellers.

You can learn more about Vassey, check out the Midlands MLS, and other info HERE.