LINCOLN, Neb. (KLKN) – Gas prices are high, groceries are more expensive, and if you want to buy a house, you’ll have to pay more interest on your mortgage.

According to Freddie Mac, mortgage rates are as high as they’ve been since November 2008.

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Graph of mortgage rates from 2008 to present (Source: Freddie Mac)

“We’ve been used to low interest rates for such a long time,” says Brad Hulse, owner of local real estate agency The 1867 Collective. “But now, as we talk about going from 4% to almost 6%, it’s meaningful dollar amounts to people.”

One potential silver lining of the cooling of the housing market is that it could mean more homes for sale.

“We have been in a marketplace to where we have not had hardly any homes for sale for such a long time,” Hulse said. “This rise in interest rates is going to help us to be able to increase and replenish that inventory.”

According to the Great Plains Regional Multi-Listing Service, housing inventory in Lincoln has gone up 9.7% for new homes and 8.6% for existing homes year over year.

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Year-over-year inventory of homes for sale in Lincoln (Source: Great Plains Regional MLS)

What does this mean for property values? Could they take a dip?

“I wouldn’t say that they would necessarily dip as much as would slow down in their appreciation rates,” Hulse said.

Hulse explained that appreciation rates have been between 10% and 15% over the past five years or so.

As a result of the increase in mortgage rates, and the housing market cooling down, he estimates that appreciation rates will range between 5% and 10% moving forward.

“It will slow down, but it definitely won’t go a negative direction by any means,” Hulse said.

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