Interest rate hike impacting homebuyers nationwide

LOUISVILLE, Ky. (WDRB) -- Inflation is hitting every aspect of American lives and affecting the market with another interest rate hike this week.

Brand new homes being built in Norton Commons will be finished soon, but buyers are going to pay a lot more with a mortgage rate of nearly 8%.

This week, the Federal Reserve raised the interest rate by three-quarters of a point for a fourth straight time to a level not seen since 2008.

"The rates from 2021, they're gone," said Julia King, CEO of King Financial Repair.

King helps people clean up their credit scores and has seen a lot of people with concerns buying a home.

"I've seen a lot of customers who were ready to buy in the spring, and then they go to put an offer in and they don't lock the rate and then they outprice themselves," she said.

In January, the mortgage rate was 3.2%. Now, it's 7.8%, an increase of nearly 150%.

"Go after what's comfortably affordable, and make sure that you have a gap in your budget so that you can afford that rising cost of food. You can afford the rising cost of auto loans," said King. "I mean, everything is affected by the interest rate hikes."

While there's no end in sight yet, economists hope it won't be as great of an increase looking for a half-point hike in December.

The Fed is expected to stop raising interest rates at some point next year.