Understanding Mortgage Interest Rates in WNY: Should You Buy Now or Wait?

HostFor anyone looking to buy or sell a home, the housing market can be very difficult to navigate on your own. Here to take the stress out of the process with her team is licensed real estate agent Enas Latif. Thank you so much for being here.

Enas LatifThank you for having me.

HostLet’s hear more about your team and what you offer here in Western New York.

Enas LatifI work with HUNT Real Estate here in Buffalo. We have a team of 10 agents and an executive administrator, and we are all full-time agents serving Buffalo, New York.

HostWe’re talking about the Federal Reserve rate announcement — what it means, what it is, for those thinking about buying a home. What are we talking about with this Federal Reserve rate?

Enas LatifIt’s been the biggest news, and everyone is asking what it means for mortgage rates and home buying and selling. Usually when the Fed’s interest rates are higher, it does affect mortgage rates as well — maybe not in the exact same amount, but it does. And we did see a hike in mortgage interest rates recently. About two months ago, rates were in the mid-sixes — six and a half, 6.7% was the highest — and now we’re seeing seven and a little higher as well.

HostSo what does that mean for those thinking about buying a home? What recommendations do you have for them?

Enas LatifIt sometimes scares buyers when they see interest rates have gone up, and many may think it’s a bad time to purchase. That could be true for some buyers, because it does change affordability. To give you an example: on a $300,000 home, when interest rates go from six and a half or 6.7% to 7%, that’s about $100 a month in the payment difference, which could be significant for someone. So buyers are a little more selective, a little more cautious about making that move right now — which is completely understandable.

HostLet’s talk about local trends versus the national market. How is Buffalo doing?

Enas LatifThank you for asking that. Real estate can be very localized. When you hear the news nationally, it might scare you a little more than it needs to for our market here. Buffalo remains a very strong seller’s market. If a home is priced properly and positioned properly, it’s still receiving multiple offers. What’s important to know is that we are still seeing appreciation in property values in Buffalo, while some areas nationwide are actually experiencing depreciation and much longer days on market.

HostShould those interested in buying a home wait, or do you tell them to continue their search? What are you really telling people who come to you for advice?

Enas LatifI get asked that almost daily. It really depends on the buyer’s situation. If the right home is available and the payment is affordable, they should move forward with that purchase. They shouldn’t pass on the right opportunity because of fear of the interest rate. They can always refinance later if rates go down. But truly, it goes back to: can they afford it? Is the payment comfortable for them? And is there a home that works for them now, or not?

HostHome buying can seem overwhelming. Why should someone watching come to your team to get their questions answered?

Enas LatifWe’re in the market on a daily basis and we understand the local market here very well. We understand the changes that are happening almost daily, and we can guide a buyer or a seller from beginning to end — help them understand this market, what it means to them, how it could affect their situation, and how to strategize for their next move.

HostAny other advice for potential home buyers thinking about purchasing their dream home?

Enas LatifThe most important thing is to make sure the decision is based on their personal needs, and not affected by the national headline specifically.

HostThank you so much for being here and for all the advice. For more help navigating the changing housing market, contact the Enas Latif Team to take the stress out of selling.

Transcript lightly edited for clarity.