Offered by Jan Hepp-Struck
Welcome to 2017 – I’ll start by wishing everyone a bright and prosperous new year! 2016 was a solid year in terms of real estate sales—very much a seller’s market with low inventory and fast turns in most cases.
With all the changes coming post election, there are varying predictions and speculations, but all seem to have one consistent undertone—that being a lot of unpredictability. One thing, however, is for certain—the key interest rate is rising for only the second time since the housing bubble burst. While it’s only a quarter-of-a-point hike, it is expected to result in higher mortgage rates—making it even more expensive to buy a home.
“If you’re planning on buying next year, act sooner rather than later, because the financing costs are only going to go up,” says Chief Economist Jonathan Smoke of realtor.com®. “We likely have a window of time between now and early 2017 before rates move dramatically higher again.”
According to Smoke, rates are projected to climb 0.75% by the end of 2017, most likely in 0.25% increments. That translates to an additional $35 to $96 on a monthly mortgage payment (based on a $250,000 home where buyers made a 20% down payment). Since the presidential election, mortgage rates have risen about 0.60%, adding around 7% to those monthly mortgage bills.
For proven expertise in establishing your home value and/or searching for a new or existing home, please call Jan at (303) 520-4340.
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