DELMARVA- Interest rates are in the five to six percent range, nearly double from a few months ago.
Marco Smith of The Maryland & Delaware Group of Long & Foster says buyers are not facing much competition despite a low supply of homes available.
He says while there are a lot of buyers, their budgets vary vastly, so the people in their price range is not as large as you may think
"There's not that many people in that price range looking," Smith said. "So it's not as competitive when at the beginning of the year, the rates were still really low and people were buying up a lot. Now the rates are still low to where they have been in the past but people are afraid of what they've seen because we got a little spoiled with that three to four percent interest rate."
Despite rapid changes in the interest rate, the prices of homes remain high.
April Green-Kastor of RE/MAX in Rehoboth Beach says houses are staying for sale longer but it's still a hot market.
"Homes are sitting a lot more than they were say six months ago," Green-Kastor said. "But in our area, we really aren't seeing an impact on prices at all. And we're still seeing multiple offer situations depending on where the house is located and the condition."
Reid Sterrett's company Expert Homebuyers buys and sells houses that are off the market, often flips.
He says despite high interest, he would buy a home in the area now and it is a safe bet.
"The reason I think it's a great investment here is because we still have an influx of people coming from New York, New Jersey, Philadelphia," Sterrett said. "When they look at the prices here on the shore, they're still much lower than the rates they are paying in their hometowns.
It is expected that interest rates will continue to rise at least until the end of July. So if you find a home you are looking for, real estate agents say to meet with a lender and see what the payments will be like and see if you can afford it.