Is the war with Iran affecting Bowling Green’s mortgage rates?

BOWLING GREEN, Ky. — Ongoing conflict in the Middle East and broader economic uncertainty continue to impact markets across the country, including the housing market.

According to NerdWallet, Kentucky’s average 30-year fixed mortgage APR was 6.40%, while the average 15-year fixed APR was 5.69%. The average five-year adjustable-rate mortgage APR was 6.58%. Mortgage rates fluctuate regularly and can vary based on a buyer’s financial situation.

Data also showed mortgage rates were below 6% earlier this year. Experts say even a half-percent increase can significantly affect monthly mortgage payments, adding hundreds of dollars to the cost of homeownership over time.

Calvin Tooley, a real estate agent in south-central Kentucky, said the Bowling Green and Warren County housing market has remained relatively strong despite economic challenges.

“The Bowling Green-Warren County market has been fairly strong despite everything,” Tooley said. “When people talk about their payments increasing, we often find that taxes and insurance costs are playing a major role.”

Mortgage lenders say affordability remains one of the biggest obstacles facing prospective homebuyers, particularly first-time buyers.

“It’s an affordability issue,” said Wade Browning of Farmers Bank & Trust. “Many first-time buyers may not have a large down payment saved. Insurance costs have increased, property taxes have risen and home prices continue to climb, so everything tends to hit at once.”

While experts say there is rarely a perfect time to buy a home, Browning believes understanding market conditions and preparing financially can help buyers make informed decisions.

Local housing professionals encourage prospective buyers to research current rates, evaluate their budgets and speak with lenders to better understand their options before entering the market.