Fed Inching Rates Up
The new Federal Reserve chairman is hellbent on taking rates up. We have seen numerous rate increases in the Colorado mortgage news this year, with three more rate hikes planned for 2019.
What does this mean for consumers? Your home mortgage will be more expensive next year than this year. Higher rates may also have the impact of chilling home buyer activity.
The Stock Market Is Pushing Rates Down
Yeah, there is that. The US Stock markets are all over the place and in turn making Colorado mortgage news. Rates were on target to be in the low fives this week. Instead, Brian Crowder (Commerce Home Mortgage) gave me a shout this week to say he has been quoting 30 year fixed rates as low as 4.375%. That’s a rate we haven’t seen in close to a year.
What these lower than expected rates mean for consumers. Its basically like saving 20% on your payment. It’s significant. I don’t think these lower rates will stay with the marketplace. And if you are rooting for the stock market to rebound, then you are also hoping for home mortgage rates to climb. Take advantage of the momentary bump in the road to get your new home today!
The Upside Of Higher Home Mortgage Rates
There truly is an upside. As Colorado mortgage news reports rates increasing, I’ve been hearing from lender associates that they have new products to offer. Ben Adams with Northpointe writes, “Our portfolio products are game changers. We [offer] 100% Equity Builder program up to $650,000.”
Department of Housing and Urban Development Acts
Add to all of this the annual rate increases recently announced by HUD. I just blogged on that the other day. Bottom line: FHA and VA mortgage limits have increased in over 3,000 USA counties. Boulder home buyers will appreciate the higher FHA limits making the Colorado mortgage news this year!
Use The Latest Colorado Mortgage News To Your Advantage
Buying a home and using a mortgage to finance it? Now is the time to make the leap. Sure, more homes will be on the market in the Spring time, but if rates climb back into the fives your purchasing power is going to decrease. For Boulder home sellers, the lower rates give you a good reason to list now rather than wait. Those low rates add more home buyers to the pool. More buyers means you can gross a higher sales price. Or possibly even garner multiple offers.
Bob Gordon, Realtor ®