IOWA — Rising interest rates are having a big impact on Iowa’s housing market. As the interest rate on a 30-year mortgage is nearing seven percent.

The results, fewer homes on the market, as year-over-year listings fell nearly 22 percent last month.
Realtors say instead of moving, many people are making home improvements, but even that can be tough.

“I know I’ve had some people say well I like my neighborhood, I’ll just add on. Which isn’t all that easy right now, because remodelers are really busy and backed up. So, I think it is a lot of combination with just people not finding what they really want and not wanting to pay that much,” said Marcia Munger, Realtor at Keller Williams.

Higher interest rates are also causing property values to fall, as the average sale price of a home fell for the first time in nearly a decade last month.