Interest Rates - On the rise?

Happy Thursday Morning Everyone! I hope you have been able to get out and enjoy some of the beautiful weather we have been having this week! I wouldn't be upset if this trend continued into summer!

For this week's post, I thought I would touch on a subject that I often get questions about. Interest Rates. 

For buyers that are just starting the home search, or are on the fence about whether they should purchase now, or wait a while, it is an especially important conversation. Over the last few years, we have been extremely lucky to have seen some of the lowest interest rates in history for a 30 year fixed rate mortgage. However, most economists believe that rates can't remain this low for long. Rates have gone from hovering near 3.5% two years ago, to just over 4.5% for a 30 year conventional (fixed) loan. 

These rising rates, coupled with the high level of appreciation we have been witnessing, can quickly change how much house you are qualified for (or feel comfortable purchasing). 

Here are the stats:

> The average home in Fort Collins is now selling for over $400,000! This is about a $24,000 jump from 2017's average. 

Source: The Group, Inc Annual Forecast

> According to the National Association of Realtors' chief economist, Lawrence Yun, they are expecting at least 3 interest rates hikes by the Federal Reserve in 2018. Because of the low unemployment rate and other important economic factors, they expect another 3-4 increases in 2019. This will continue to push mortgage rates higher and higher. 

> For every 1% increase in interest rates, your buying power decreases by 10 percent. 

So, what does this mean for you? Well, long <blog post> short, now is the time to jump into the market if you have been on the fence. Rates are likely not going down, and neither are prices (at least in the foreseeable future). If homeownership is a goal you have for yourselves or you family (or you are ready to capitalize on the equity in your current home and move up), it may be time to start thinking about taking the leap. 

You may be surprised by the loan options available to you (you do NOT necessarily need to have 10 or 20% cash down to purchase a home). And while inventory is low, it IS possible to find an affordable home in Northern Colorado :) 

As always, please feel free to reach out with any questions! I hope you have a great rest of your week, and are able to have some green beer on Saturday! 

Christie