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Buy Now if you can, Rents in Denver and Colorado Going Up!!
Buy Now if you can, Rents in Denver and Colorado Going Up!! Last month, the Federal Reserve, in a unanimous vote, decided to decrease its bond purchasing further. The bond purchases were the government’s stimulus package created to keep long-term mortgage interest rates artificially low to help drive the housing market. Most experts believe that tapering will cause interest rates to increase as we move through the year. Ready to find your dream home in Colorado? Interest rates have remained relatively stable since the onset of the tapering in December. This is probably because the first round of increases had already been ‘priced into’ the equation last summer when rates skyrocketed by over a whole percentage point just on the speculation that tapering would occur later in 2013.
However, as we move forward, most analysts believe rates will start to rise, culminating in a rate close to a whole percentage point higher than current rates by this time next year. For example, Freddie Mac, Fannie Mae, The Mortgage Bankers Association, and the National Association of Realtors have all recently projected rates to be between 5-5.4% at this time next year. The Bottom Line is...If you are a first-time or move-up buyer, the mortgage cost on your new home will probably increase as we move through the year. If the timing makes sense, buying sooner rather than later may save you substantial money in lower mortgage payments over the long term. |
