Do good things always come to those who wait?
We don't think so; especially when it comes to those Coloradans who are actively searching for their next home or condo. Although some buyers worry about the lack of inventory and others are scared away by rising home prices, most are forgetting about one of the most important factors of affordability: interest rates.
Post-housing crisis, we have taken low interest rates for granted. They haven't always remained this low for so long and they likely won't stay this low for much longer, according to talking heads.
Reuters reports, "Financial markets financial markets saw just a 30 percent chance of the Federal Reserve raising interest rates in March; but by Friday after a striking series of comments from Fed officials, including Chair Janet Yellen, traders saw an 80 percent chance."
Most millennials, now the largest age group of home buyers, were probably not even born yet when interest rates were almost 19 percent in the early 1980s. Just imagine how much house could you buy if interest rates returned to that level at the next policy meeting on March 14-15.
We're not saying they are going to jump 15 percent anytime soon, but with the DOW hitting record highs, unemployment shrinking, and the economy fairing quite well as of late, the Federal Reserve has to feel more comfortable raising interest rates now than they would have 4 to 5 years ago.
According to The New York Times, Federal Reserve chairwoman Janet Yellen says the Fed is likely to raise interest rates next week. As of Tuesday, Bloomberg has indicated a 98 percent probability that the Federal Reserve will raise interest rates at its March meeting.
Locking your rate today and buying soon could potentially save you thousands of dollars in interest over the life of your loan. Now is the time to write and submit your strong offers. You're only going to be able to afford less and less as interest rates increase.
Contact TRELORA today to get those offers out while interest rates are still low!
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