LITTLE ROCK, Ark. — For the first time in more than a decade, mortgage rates fell in February according to the National Association of Realtors.
Existing-home sales also increased 14.5% in February.
"On a national standpoint, we are seeing that houses are not selling for as much as they did for the last two years," said Kaye Chambers, a real estate agent with Keller Williams Realty.
She said this is due to the rise in interest rates.
"We saw houses selling for $20K- $30K over because so many buyers were taking advantage of historically low interest rates," Chambers said.
This week, the Federal Reserve raised interest rates 0.25% for the ninth consecutive time.
Chambers said it impacts how much a buyer will pay for a home.
"Two years ago, our average house sale was $190K-$195K. Now we're in a market where it's up to $220K- $230K," Chambers explained.
The average price for an existing home dropped from $363K to $363K, a 0.2% decline, according to the National Association of Realtors.
The interest rate hike, Kaye said, also affects how much money loan companies can approve for buyers.
"People who used to be approved for $125K, are now looking at more of like $95K or a $100K approval," Chambers said.
Which means many sellers are dropping their asking price to something more affordable.
"We're having to have that conversation with our sellers that the price of the house is not going to be nearly as high as it used to be," Chambers said.
She added even with the rise in interest rates, you shouldn't let that deter you from buying a home if you're looking.
There are resources like rural development loans and refinancing options.
"Maybe your interest rate is little bit higher right now. We always have the opportunity to refinance later on and that's the conversation I'm having with my buyers," Chambers said.