Housing market outlook - WQOW TV: Eau Claire, WI NEWS18 News, Weather, and Sports

Housing market outlook

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MADISON (WKOW) -- The Wisconsin housing market continues to show signs of recovery as the busy season for real estate hits full stride. But a recent, sharp increase in mortgage-interest rates has people concerned about whether the housing recovery will soften as home loans become more expensive.

In June, the average rate on a 30-year fixed mortgage rate jumped to 4.46 percent, when it had been below four percent. Luke Bruckner, a realtor with Bunbury & Associates, says the mortgage rate jump is cause because of the activity in the market.

"We're seeing a lot more buyers out there, a lot less inventory, and it just really drives the interest rates up," Bruckner said. "So, as we've seen more and more activity, we've also seen the interest rates go up."

Bruckner says mortgage rates fluctuate as the days and weeks go on. He says it's hard to say if it will go below four percent again.

"I think what's happened now, is that this jump has driven buyers to say how high is it going to go, should we buy right now?" Bruckner said.

He says this really isn't a buyer's market anymore because there isn't enough inventory, but he did say it is still a good time to buy or sell. He also doesn't think the higher mortgage rates will cause problems for the buyers who are secure with what they can pay.

"The people are worried about a point jump, probably should not be buying a house right now," Bruckner said.

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