Are Historically Low Interest Rates a Thing of the Past?
Mortgage rates are on the rise and home prices are significantly edging up. Freddie Mac’s Primary Mortgage Market Survey shows the rate on a 30-year fixed mortgage has risen to 4.51% in the week of July 11, a two-year high. National home prices increased 12.2% year-over-year in May, the highest increase in seven years, according to Core Logic. The strong job market is prompting speculation that the Federal Reserve will reduce future bond purchases, causing bond yields and mortgage rates to continue to rise. This threat of increased rates is motivating consumers to buy sooner rather than later.
Confidence for both sellers and buyers remains high. Although rates are still extremely low and affordability is still high by historic standards, these increases have helped fuel the pace of home sales as buyers prepare to beat the rate increase, boosting demand throughout the Denver market. A low market inventory is causing property values to increase and properties to sell quickly. This market indicates the window of opportunity will continue to be favorable for both home sellers and buyers alike through the summer and into the fall.
Whether you are thinking about buying your first home, buying a bigger home, or making an investment purchase, right now may be the right time. The question no longer seems to be “Will rates continue to go up?” but rather “How much?” Call The Steller Group at 303.539.5228 for quality representation before these interest rates are a thing of the past.