HONOLULU (KHON2) — The rise in mortgage rates is affecting the real estate market. Realtors said “bidding wars” are becoming less common as the market starts to cool off.

It is what many economists predicted. A raise interest rates and demand will go down. The same goes for mortgage loans with rates nearly hitting 6%.

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Keller Williams Realtor Associate Daniel Ulu said the urgency from buyers to outbid others is on the way down.

“A couple of months ago you would probably see lines standing outside of the open house,” Ulu said. “Do I expect the same for this house when we hit the market? Probably not. Probably do see a steady amount of traffic coming in but definitely not how we had a few months ago.”

The Honolulu Board of Realtors’ former president Shannon Heaven said it is becoming more of an even playing field between buyers and sellers.

Heaven said, “They’re not willing to just say, ‘We’ll take everything as is. You just move out. You can you know, throw it. We’ll throw in the kitchen sink. We will our firstborn child. Anything you want, we’ll give you, if you pick us.”

She said there has not been a sharp drop in single-family home prices as some expected, the median sales price sits at $1,153,500.

But with the rise in interest rates, some buyers are qualifying for loans of lesser amounts, while others wait and see if rates will eventually go down.

But even those purchasing at higher rates may have options down the line.

Ulu said, “And then later on if rates do fall you can always refinance.”

The Federal Reserve has warned of plans to increase interest rates even more in July, but heaven said buyers should not be discouraged.

Heaven said, “You have to think that in the scope of the history of interest rates, a 6% interest rate or a five and a half percent interest rate is still an excellent interest rate. If you look over interest rates over time, are not in the 18% or 10%.”

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First-time home buyers may learn more about their options through the Honolulu Board of Realtors.