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KTNV 13 Action News

Residents feel buying a house is now 'out of touch' with high mortgage rates

By Abel Garcia,


Mortgage rates have climbed to their highest level since November.

National data shows rates have jumped up again for the third week in a row.

Alexis Keller has lived in Las Vegas her whole life. She is currently renting in the valley and wants to buy a home. After putting numbers in perspective, she says buying is unrealistic for her.

"It is just unbelievable," she said. "I don't think I could, I don't see myself in the future buying a home, its going to take a good two decades for sure."

Keller says her current salary and circumstances make buying a home out of reach for many like her.

Data from Freddie Mac, a federal finance housing agency shows as of June 1, the 30-year fixed rate mortgage is 6.79 percent.

This time last year was at 5.09 percent.

"Your monthly payment for that price point is going to be anywhere from $2,400 to about $2,800 a month depending on the type of loan and the type of down payment you are willing to put down," said broker and managing partner of the agency in Las Vegas, Zar Zanganeh on those trying to buy an average single-family home priced at about $400,000.

He expects interest rates to continue to rise.

Zanganeh said the monthly payment of a home priced at $425k with the current interest rate at 6.79% on a 30-year fixed loan plus property taxes, HOA fees and other charges is about $3,000.

"With prices still going up and being in a very healthy market with low inventory there is no better time to buy than right now, the interest rate will change and it is something you can always refinance," he said.

Zanganeh says rate buy-down options are available. He says to talk to your lender to see if the seller could contribute money to help lower your rate.

For others like Keller, the monthly payment is out of the question.

"When you look at those numbers, what comes to mind for you as a person who potentially wants to buy a home?" KTNV's Abel Garcia asked.

"I can barely afford the rent by myself, with a partner hopefully we can find some income but I don't see it happening," she said.

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