Mortgage Rates Hit New High Amid Fed Rate Hike

The Federal Reserve's recent rate hike has pushed mortgage rates to their highest level since January 2025. The increase, which was a quarter-point, brought the benchmark interest rate to a range of 3.75% to 4.00%. This move has had an indirect effect on mortgage rates, making homeownership more expensive for those looking to purchase a home.

Local lenders in Amarillo, Texas say that while higher mortgage rates are affecting buyers, there are still options available. Kelsey Lloyd, vice president of mortgages at Amarillo National Bank, notes that 'there's still something positive to look at' and that the market is 'still moving'. She also points out that sellers are paying closing costs or lowering prices to make homes more attainable.

Lee Robinson, vice president of mortgages at ACFCU, agrees that higher rates have a disproportionate impact on middle-income buyers. He explains that those who already have homes financed at lower rates are hesitant to give them up, and that high-end buyers are less affected by the increase in mortgage rates.