LEXINGTON, Ky (WKYT) - Mortgage rates could be on their way up, and that's because the government is considering a pull-back on one of its stimulus programs. WKYT spoke with a local realtor about this, and what it could mean for buyers and sellers.
The party could soon be over for home buyers and sellers cashing in on low interest rates.
President of the Lexington Business Association of Realtor, Al Blevins, expects rates to stay around four percent, and next year reach somewhere around five percent. Although, he says its not all bad news for the housing market here.
"Real estate's local, just like the weather," Blevins says. "So, we have affordable housing. For the East and West Coast it would be very significant and people wouldn't qualify, but it's still very affordable."
Blevins also says inventory is six months out, meaning buyers are for the most part looking for move-in ready homes and snatching them up quickly.
Blevins says, "In the past four year, there's not been a lot of new home construction, but it's coming on this year. So, the inventory, it becomes a seller's market."
On a positive note, FED Chairman Ben Bernake says higher interest rates could encourage banks to lend more, and mortgage rates are still near historic lows.
L-Bar released more encouraging news for Central Kentucky's housing market Monday afternoon.
The organization says there was more than $174 million in home sales in May. There were a total of 984 reported sales last month, and that's up 26 percent from last May.
The median sale price was $149,000.