SOUTHFIELD, Mich. (WXYZ) — From Farmington Hills to Ferndale, homeowners are expressing worry over rising interest rates and anticipated falling prices that could soon be creating a troubling scenario.
Hairstylist Jayme McNeil is among those watching the situation closely.
“I hope for the best and plan for the worst,” says McNeil who bought a home 10 years ago. She recalls relying on savings when COVID led to a lockdown for 3 months. She fears many could soon be falling under water, with loans becoming more than a home is worth.
According to Freddie Mac, the current APR interest rate for a 30 year fixed loan is nearly 6%.
“We are already seeing a 5% reduction in home prices,” says real estate expert Ali Charara, with Century 21 Curran and Oberski. He says fewer people are also refinancing now.
“In this past month, you’re seeing a lot of inventory coming on the market,” adds Charara.
According to the Michigan State Housing Authority, more than 16,000 households in our state are in line for aid. “This month I’ve seen over 30 different people regarding stopping foreclosures,” says bankruptcy attorney John Kallabat.
He says not everyone can get a loan modification and “The only thing that helps them is if they have some equity in their homes, with this current market.”
Both experts we talked to stress importance of trying to save each month, for a rainy day fund. Money that goes a long way during economic hardship.
For foreclosure resources, click this link: https://www.hud.gov/topics/avoiding_foreclosure.
