CHARLOTTE, N.C. — Homeowners are feeling the sting of both inflation and higher interest rates.
"I think we all have felt the pain of everything in life is more expensive," Katie Barger, a licensed mortgage advisor, said.
Mortgage rates have soared to their highest levels in more than two decades with the 30-year fixed mortgage rate at 7.41%.
It's the highest rate since December 2000, and the increase in cost has fewer people applying for a mortgage as some homeowners struggle to keep up.
Barger said during the pandemic, some homeowners were in forbearance and saw reduced or paused mortgage payments.
"At a certain point you have to come out with a forbearance right, you can only extend for so long," Barger said. "People are now really trying to get back on track."
Barger said getting back on track can be challenging with many homeowners now facing even higher costs.
"The prices are increasing and the rates are increasing, but we're not seeing that same growth within the hourly rates or the salaries out there," Barger said.
According to the Mortgage Bankers Association, overall mortgage applications have also declined as both prospective homebuyers and current homeowners continue to feel the impact of these elevated rates.
The association reports the purchase market, which is still facing limited inventory, saw applications down 1.3% from last week and 27% behind last year’s pace.
As households continue working to make ends meet, Barger said she is also encouraging people to explore all their options.
"If you are struggling with finances your first step should be to talk to a loan officer," Barger said.
She said speaking with a realtor you are comfortable with can help expand and explore your options to put you in a better position financially.
Contact Tradesha Woodard at twoodard1@wcnc.com and follow her on Facebook, X and Instagram.