The fact of the matter is that no one knows where mortgage rates are going. The majority of opinion seems to be that our recent artificially low 3% and 4% rates will most likely increase.
Boulder, CO (PRWEB) October 19, 2015
“The fact of the matter is that no one knows where mortgage rates are going,” said Barry. “The majority of opinion seems to be that our recent artificially low 3% and 4% rates will most likely increase.”
Historically, adds Barry, aka “Bear,” rates have always gone up much faster than they have gone down, which could prove critical. If thirty-year mortgage rates were to increase from 4% to 6%, respective monthly house payments would increase approximately 25% per month, which would translate to fewer buyers.
According to the CNBC.com article, U.S. housing starts fell more than expected in August, but a rebound in building permits pointed to sustained strength in the housing market, which should support economic growth. Additionally, the article reports a tightening labor market has unleashed pent-up demand for housing, especially among young adults.
“There are many factors that affect real estate,” said Liz. “For example, higher interest rates will affect demand, because higher rates translate into less affordability. Emotions have also often proven a hindrance to real estate objectivity.”
Barry and Liz, who work mostly in residential and investment real estate, speculate that we could be entering a new real estate market, therefore conditions will change. The Friedlander’s stress that there are many factors that affect home prices and their marketability, and rates can certainly be a major factor.
“One’s best resources, of course, are knowledge, experience and up-to-date data,” said Barry. “Information remains a buyer or homeowner’s best tool to protect their most valuable personal assets: their home and equity.”
About Barry and Liz Friedlander, RE/MAX of Boulder, Inc.
Barry and Liz Friedlander of RE/MAX of Boulder are Certified Distressed Property Experts (CDPE), Certified Residential Specialist (CRS), Accredited Buyer Representatives (ABR), and Eco-Brokers. RE/MAX of Boulder is nationally recognized as one of the most successful real estate firms in the business and was named the No. 1 RE/MAX office in the country from 2007 to 2012. For more information, please call (303) 416-5939, or visit the office at 2425 Canyon Blvd., Suite 110, Boulder, CO 80302.
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