Still the time to buy, despite mortgage rate increase

By Alyssa Donovan

June 30, 2013 Updated Jun 30, 2013 at 10:47 PM CDT

PEKIN, Ill.--Area home builders are optimistic about the local housing market, despite the recent increase in mortgage rates across the nation.

Statistics show 30-year mortgage rates are at nearly 4 and a half percent, making rates the highest in 2 years.

David Whitehurst of P and W Builders is a participant in this weekend's Parade of Homes.

Whitehurst says the mortgage rate increase shouldn't scare away area homeowners looking to buy.

He said, "You go back to the 70's, you had 8 and a quarter money which was good money. In the 80's it was 18% money. Here we are today with 4 1/2% money on a 30 year mortgage it's unbelievably low."

Whitehurst encourages purchasing a home now since he says house prices are expected to rise in the next few months due to material costs.

Sunday was the last day for the Parade of Homes, put on by the Home Builders Association of Greater Peoria.