Are you thinking about buying a home in Colorado? If you’ve already spoken to a lender then you know that mortgage rates are rising. Knowing this about mortgage rates, how should this factor into your decision to buy a home? You may decide to go ahead and buy before rates get higher or you might wait for them to go down. Continue reading for a closer look at how things have worked in the past and what could happen in the future. Also, if you are looking to buy or sell a home in Colorado, consider Mark Eibner as your agent.
Taking A Closer Look
One way to get some insight into how mortgage rates will trend is to look at how the current mortgage rate compares to historical data. Yes, there’s no doubt about it, mortgage rates are higher than the average 30-year fixed rates that we’ve see in recent years. However, today’s rates are still comparatively low when looking at where rates have been since 1971. If you’re deciding whether to buy now or wait, this is important context to have. Today’s mortgage rate still allows you to lock in a rate comparatively lower than a few decades ago. This may explain why there are still buyers out there in the Colorado real estate market.
Though trends and historical data are usually great indicators of how things will go, nothing is set in stone. Many would-be buyers are asking the question, “what if rates get even higher?” This also explains why there are still many buyers in Colorado. They are ultimately motivated to buy because they know rates have risen steadily this year and they are eager to get ahead of further increases. As mortgage rates climb, so do monthly mortgage payments. The higher the monthly mortgage payment, the less buying power buyers have. If rates continue to rise, it will likely cost you more to buy a home if you wait.