Mortgage rates climb above 7%. What it means for North Texas homebuyers

The useful part

Mortgage rates have climbed above 7%, reaching a nearly two-year high and raising new questions about how buyers and sellers will respond across the North Texas housing market. While the increase could make purchasing a home more expensive for some buyers, local real estate higher rates could also reduce competition and create opportunities for people who remain in the market. Brent Myers, director for the Greater Fort Worth Association of Realtors, said the increase was anticipated.

How it works

• Despite the higher cost of borrowing, Myers said the changing market could work in favor of some buyers by reducing the number of people competing for homes.
• It makes a big difference in how real estate is handled," Myers said.
• "So I mean it's inflation and I realize that's part of what the overall issue is, is that everything is expensive and so the idea to bump those rates up to bring down inflation," Myers said.
• "I know that sounds a little counterintuitive, but the fact that the rates are up a little bit, there's going to be less competition for houses," Myers said.
• "We're going to see some people drop out of that market and so there's going to be some good opportunities there." But interest rates are only one part of the affordability equation.

What to take from it

Justin Landon, president and CEO of the MetroTex Association of Realtors, said buyers also need to consider other expenses that come with owning a home. "I think it's important to understand that there's a lot of factors that play into that. Those factors include property taxes and homeowners insurance, which Landon said can have an even greater effect on affordability.

Details worth keeping

Myers pointed to inflation as one of the factors behind higher rates. "A much bigger headwind for affordability than interest rates.