Kitchell Group Real Estate

What Do These Interest Rate Hikes Mean to Home Sellers and Buyers?


Welcome Message from Stacy Kitchell
Managing Broker of Kitchell Group and former Corporate Real Estate Financial Analyst (

Welcome and thank you for visiting our website!  Lots of great information for you below.  We are here to educate you and, if you choose, to consult with you on what is the best course of action for you.  Maybe it is doing nothing at all – and that is okay.  We want to get to know you and to help you when the time is right.  My team and I have grown our business based on doing what’s best for our clients and potential clients.  That hasn’t and won’t change.

An advantage of working with our firm is the financial knowledge, appraisal knowledge and transaction experience we have, which has created wealth for many of our clients over the years and, much to their surprise, provided a surprisingly smooth home selling or buying experience.  We truly hope to have the opportunity to work with you and to enhance the life of you and your family.

For our past clients, hello!!   I hope you enjoy the article below and reach out any time for recommended vendors, advice on upgrades, updates on the market or even info on public/private schools, doctors, etc.  We have a wide network and we’re here for you!  And thank you,, as always, for your business.  

Warmest Wishes,

Stacy Kitchell

What’s going on with interest rates and how will that affect home sellers and home buyers in Tampa Bay? 


by Stacy Kitchell

Managing Broker of Kitchell Group and former Corporate Real Estate Financial Analyst (

OK, first — the big message here is that there is no need to panic.  Yes, as Goldman Sachs predicted early in the week of 6/12/2022, the Federal Reserve increased the federal funds rate by a historical .75%, the largest one-time increase since 1994.  In addition, The table below shows Goldman Sachs’ projected Fed Rate increases in the coming months.

It is important to understand that long-term rates for fixed-rate mortgages are not directly correlated to the federal funds rate.  Therefore, if the federal funds rate increases by .75%, it DOES NOT mean that long-term interest rates for 30-year fixed rate mortgages will increase by the same rate. 

As of 6/30/2022, after the .75% Fed Rate increase, the Freddie Mac average loan commitment rate was 5.70% (source: So, about a .50% increase as of 6/30/2022 – not .75%.   However, this rate changes daily based on investors’ perception of risk among other factors.

Based on a $400,000 loan balance and the Freddie Mac Avg. Loan Commitment rate as of 6/30/2022, monthly mortgage payments have increased by approx. $117.74/mo.  With each Fed. meeting (7/26-7/27, 9/20-9/21, 11/01-11/02, 12/13-12/14), I will update the table below, so mark your calendars to visit for updates.


  1. As shown above, buyer monthly mortgage payments will be much higher but wages will most likely not keep up at the same rate and this could put downward pressure of sale prices.
  2. Less multiple offer situations, an increase of Days on Market and an increase list-to-close time frames/absorption rates. less showings/lower attendance at open houses (all of these are already happening in many neighborhoods in Tampa Bay).
  3. Stock markets may be volatile.  STOCK MARKET INDEXES ARE DOWN SIGNIFICANTLY YEAR-TO-DATE.  As of 6/30/2022, Dow Jones (-17.75%), NASDAQ (-30.98%), & S&P 500 (-22.92%).  Consequently, many people are feeling less wealthy, including out-of-state buyers (e.g.  Northeast, California, Midwest), who’ve been paying in excess of appraised value for homes which could also negatively impact future sales prices.

But, no one (including me) has a crystal ball to predict the future…  We definitely recommend speaking with your financial advisor and accountant before making any final decisions.

Kitchell Group Recommendations:


  1. Interest rates are projected to increase several times this year – Timing is key!  Rate increases may reduce the price range you can afford.  Home prices in Tampa may not decrease for many months or even this year since we are still a top destination city (#2 in country in June 2022).
  2. Less Competition for Homes Could Be An Advantage for Buyers – Some buyers who don’t need to buy or are nervous are stepping back, resulting in less competition and opportunity to negotiate.  Our listings in June were the first in a while NOT to receive multiple offers.  Days on Market are increasing.  Buyers have to be in the game to win.
  3. Builders Are Slashing Prices to Sell Homes in Fast-Cooling US Markets – Builders are already seeing less demand and are offering more incentives (a good thing for buyers) and they have increased their marketing, too. I started noticing 2 weeks ago that I was receiving a LOT more marketing Emails from MULTIPLE builders – some I have not heard from in months or 1+ years since homes were selling themselves.
  4. Cheaper to Buy Than to Rent – Since many buyers won’t be able to qualify for affordable homes due to interest rate increases, rents are predicted to rise.

Kitchell Group Recommendations:

Questions? Send us a note via our Contact Page.  Thank you for visiting and have a great day!  
– Kitchell Group Staff

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