The U.S. Federal Reserve has lifted its benchmark interest rate by a quarter of a percentage point.
It’s the second hike this year, and two more are expected before the year is out — with the Fed saying the decision reflects an economy that’s steadily getting stronger.
But some Americans say the higher interest rates will hit them hard — especially those hoping to buy a home.
Mary MacCarthy filed this report from Denver.
IN: "Frankie Amaya recently..."
OUT: SOC
DUR: 2'25"
GENERIC: http://www.fsnradionews.com/feeds/0614HigherInterestRatesHardForHomebuyers-mm-generic-pkg.mp3
SCRIPT:
Frankie Amaya recently had an offer accepted on a two-story townhome in north Denver — a region of the U.S. where it’s very hard to buy a house.
Soundbite - Frankie Amaya, Denver resident
“It’ll be nice to get into our own home and no longer have any surprises because it’s someone else’s property."
A booming economy and high reel estate prices make for a tight market.
Soundbite - Frankie Amaya, Denver resident
“When we found a house, and we went in, there were already eighteen bids on that one house."
It took Amaya months to find a home, and during that time, his budget took a hit due to rising interest rates.
Soundbite - Frankie Amaya, Denver resident
“We got a call from our lender, saying, ‘I have news - interest rates have gone up.’ And we were like, whoa.” // “When everything went up, we had less to work with.”
For Amaya, owning his own home is part of the American Dream — but the rising interest rates made that nearly impossible.
Soundbite - Frankie Amaya, Denver resident
"We get this hit, that we lost more money, money we thought we could bargain with. Now, that’s gone.”
But Amaya was eventually able to lock in an interest rate, before the latest increase announced this week by the US Federal Reserve.
The rate hike takes the benchmark rate from 1.75% to 2%… Part of incremental hikes by the US central bank, from historic lows they put in place after the recession that started in 2008.
The rate increase will have the biggest impact on Americans with high credit card debt, those taking out car loans, and those seeking mortgages.
Soundbite - Joe Chang, Realtor with Live Urban Denver
“You’re not going to see the immediate effect right away, but you can assume the interest rates for mortgages are going to rise.”
Denver real estate agent Joe Chang says it’s important to remember that, from a historical standpoint, rates are still very low — and that since the Fed has indicated rates will continue to rise, it's better to buy a home now than to wait
Soundbite - Joe Chang, Realtor with Live Urban Denver
“I’m seeing that my own clients are getting frustrated. I have people who are moving here from someplace else to Denver, and they’re deciding to rent, because it’s just a little too scary for them right now."
The average interest rate for a 30-year fixed mortgage has risen from 3.89% a year ago… to 4.45% now— a difference that may sound small… but one that adds tens of thousands of dollars to the final cost of a mortgage.
In Denver, I’m Mary MacCarthy
It’s the second hike this year, and two more are expected before the year is out — with the Fed saying the decision reflects an economy that’s steadily getting stronger.
But some Americans say the higher interest rates will hit them hard — especially those hoping to buy a home.
Mary MacCarthy filed this report from Denver.
IN: "Frankie Amaya recently..."
OUT: SOC
DUR: 2'25"
GENERIC: http://www.fsnradionews.com/feeds/0614HigherInterestRatesHardForHomebuyers-mm-generic-pkg.mp3
SCRIPT:
Frankie Amaya recently had an offer accepted on a two-story townhome in north Denver — a region of the U.S. where it’s very hard to buy a house.
Soundbite - Frankie Amaya, Denver resident
“It’ll be nice to get into our own home and no longer have any surprises because it’s someone else’s property."
A booming economy and high reel estate prices make for a tight market.
Soundbite - Frankie Amaya, Denver resident
“When we found a house, and we went in, there were already eighteen bids on that one house."
It took Amaya months to find a home, and during that time, his budget took a hit due to rising interest rates.
Soundbite - Frankie Amaya, Denver resident
“We got a call from our lender, saying, ‘I have news - interest rates have gone up.’ And we were like, whoa.” // “When everything went up, we had less to work with.”
For Amaya, owning his own home is part of the American Dream — but the rising interest rates made that nearly impossible.
Soundbite - Frankie Amaya, Denver resident
"We get this hit, that we lost more money, money we thought we could bargain with. Now, that’s gone.”
But Amaya was eventually able to lock in an interest rate, before the latest increase announced this week by the US Federal Reserve.
The rate hike takes the benchmark rate from 1.75% to 2%… Part of incremental hikes by the US central bank, from historic lows they put in place after the recession that started in 2008.
The rate increase will have the biggest impact on Americans with high credit card debt, those taking out car loans, and those seeking mortgages.
Soundbite - Joe Chang, Realtor with Live Urban Denver
“You’re not going to see the immediate effect right away, but you can assume the interest rates for mortgages are going to rise.”
Denver real estate agent Joe Chang says it’s important to remember that, from a historical standpoint, rates are still very low — and that since the Fed has indicated rates will continue to rise, it's better to buy a home now than to wait
Soundbite - Joe Chang, Realtor with Live Urban Denver
“I’m seeing that my own clients are getting frustrated. I have people who are moving here from someplace else to Denver, and they’re deciding to rent, because it’s just a little too scary for them right now."
The average interest rate for a 30-year fixed mortgage has risen from 3.89% a year ago… to 4.45% now— a difference that may sound small… but one that adds tens of thousands of dollars to the final cost of a mortgage.
In Denver, I’m Mary MacCarthy