Mortgage rated ARE expected to increase from the long-time historic lows. We have all been a little spoiled by these rates as they have become the "Norm". I laugh when I say this, I swore I wouldn't but, "Back when I was a kid" in the 80's and even early 90's an 8% rate was a teriffic rate!
Fast forward to today with some rates were seen in the 4% range and low 5%'s were common, the "sticker shock" will be tremendous.
Even more crucial to the Colorado Springs real estate market is the effect we will see from the predicted increase: Lower affordability index and reduced real estate prices.
As rates move upward, prices will go down. Real estate, being supply and demand driven, will experience less buyers which will qualify for a certain price range of a home. As a general rule, for every 1% increase in rates, there is a 10% decrease in affordability. Resulting impact will be seen as less buyers causing prices to slip and those in the market to buy being able to afford less!
William Szilagyi WilliamsHomeSellers LLC 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs
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