Predictions of rising Mortgage Interest rates may impact the Colorado Springs Real Estate market.
Industry experts are forecasting rates to increase to 6% or higher by years' end. Each increase of 1 percentage point in rates adds as much as 15 percent to the total cost of a home. Example: A $200,000 mortgage at 5.5% is $1135 and at 6.5% is $1264 P+I, a difference of $129 and an 11% increase in payments
It is unlikely that Mortgage rates will go down because of the massive sell off in bonds, the ceasing of the government's $1.25 trillion mortgage debt buy-out and the massive national debt accumulating to record levels.
We are starting to see the effects of rising rates here in Colorado Springs. In the last week or so rates have risen considerably moving upward from around 5% to 5.3%. A considerable increase over a short time horizon.
Interest rates are a big risk to the Colorado Springs Real Estate Market. For potential Home Buyers and Home Sellers, "Holding off" may end up costing thousands of extra dollars each years and, in many cases make a new purchase unaffordable.
Today's rates are historically low. Increased rates will put pressure on the entire economy. Six months from now less buyers may be able to qualify.
Opinion by William Szilagyi Williams HomeSellers LLC www.ZColorado.com 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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