KANSAS CITY, Mo. — The Federal Reserve continues to hike up interest rates amid soaring inflation. As a result, homebuyers and owners are seeing record-high mortgage rates.
The 30-year fixed mortgage rate topped 7% this week, certainly putting the effects of inflation into focus. Just a year ago, the rate was only around 3%.
A local moving company, A Friend With A Truck Movers, is feeling the load of inflation as rising mortgage rates have created a domino effect.
Owner John Sheridan says business is down about 25% compared to normal years. As a business that depends on the rise and fall of the housing market, the current decline concerns Sheridan.
“I think the housing market hit kind of a brick wall there a little bit,” said Sheridan. “The winter season is always naturally slow, so that compacting with the interest rates is a little scary.”
Employees are completing about three to four moves per day, down from about five to 10 this time last year. Sheridan hopes people moving into Kansas City will keep the business afloat.
“As you can look around town, there’s still a lot being built, so it’s promising,” said Sheridan.
Despite the current climate of the housing market, Sheridan is still hopeful about his business.
“It stings a little bit, makes you wonder about the future,” said Sheridan. “But as of right now, we’re carrying it on.”
Mante Thomas has been a mover with the company for 10 years. While business is slower these days, he says a new trend in the housing market is keeping their services relevant.
“There’s been a lot of smaller moves, and I see a lot of people moving from houses to apartments," said Thomas. "Places that are cheaper or they’re moving in with someone.”
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