Over the past year, rising interest rates have changed the home-buying game — and buyers in St. Louis are feeling the shift. Whether you're a first-time buyer or a seasoned homeowner, these rate hikes are influencing everything from monthly payments to purchasing power. So what does it mean for you, and what should you be watching for?

📈 Interest Rates Are Up — But So Is Demand

In 2024 and into 2025, mortgage rates have climbed from the historically low levels seen during the pandemic. While this has slightly cooled off some national markets, the St. Louis area remains surprisingly resilient. Demand is still strong, especially in popular neighborhoods like Tower Grove, Webster Groves, and Kirkwood, where inventory remains tight and homes continue to move quickly.

💸 Monthly Payments Are Higher

Even a small increase in interest rates can mean hundreds of extra dollars per month for buyers. For example, a buyer who could once afford a $350,000 home at 3% interest may now be limited to around $300,000 at 7%. This is pushing many buyers to reevaluate their budget or shift their focus to different areas of the city or metro.

🏡 More Buyers Are Getting Creative

To combat higher monthly costs, St. Louis buyers are exploring creative financing options, such as:

• Adjustable-rate mortgages (ARMs)

• Seller concessions or buydowns

• Using local grant programs or first-time buyer incentives
  They're also widening their search to include up-and-coming neighborhoods or older homes that may need a little TLC but offer more space and value.

🕰️ Timing Has Become Even More Important

With changing rates, locking in a mortgage at the right time can have a big impact. Some buyers are staying closely connected with their lender and Realtor® to act quickly when favorable rates dip — even if it’s only temporary.

🏠 Should You Still Buy in This Market?

Absolutely — but with strategy. St. Louis remains one of the more affordable major metros in the country, and owning still builds long-term equity, especially if you're planning to stay in your home for 5+ years. The key is to work with a local expert who understands the fast-changing conditions and can help you make a smart, informed move.

✅ Final Thoughts

Rising interest rates may be changing the landscape, but they don’t have to put your homeownership goals on hold. With the right guidance, planning, and perspective, buying a home in St. Louis is still within reach.

Looking for expert advice in this market? Let’s connect — we’ll help you navigate the numbers and find the home that fits your needs and your budget.