EAGLE RIVER, Alaska (KTUU) - According to Freddie Mac, Mortgage rates are at their highest level in four years. Just a few days ago, The Labor Department reported the costs of gas, rent, clothes, medical care, and food are increasing. Raising concerns inflation could impact home-buyers and sellers.
"We're new to Alaska and we're in the market to buy a house," said perspective home-buyer David May.
According to Unity Home Group Agent Paul Callaway, buyers are closely watching their budget by monitoring what they're going to be paying monthly on a home. When interest rates rise that can significantly change a budget and if buyers can't buy as much, it impacts sellers too.
"We're experienced home-buyers so it's not our first rodeo, so to speak. We've bought and sold some houses in the Midwest but being new to Alaska the market is a little bit different," May said.
However, the threat of inflation could disrupt any fluctuating stability of the housing market in the near future.
"Inflation obviously is going to cause typical home prices to increase as well so then buyers' ability to buy would be diminished as well. It's hard to see we don't have a glass ball to tell us what the future is going to hold," Callaway said, "typically we see home prices go up significantly over a ten-year period in Alaska."