Rate Bounce

Rates hit near-historic lows this week and are now at 3.49% for a 30-year mortgage.

There have only been two other times in history when rates have been this low- April 2013 and October 2016.

It’s interesting to see what happened soon after bottoming out these last two times.

In April of 2013 rates hit 3.41%. By August 2013 they had jumped to 4.40%.

Rates bottomed again in October 2016 at 3.42%. Just two months later in December 2016 they were 4.32%.

Each time the increase was nearly 1% within just a few months.

So, if history proves itself as a guide, we can’t expect these rates to last for long.

Posted on September 13, 2019 at 5:32 pm
Meagan Griesel | Category: Colorado Real Estate, Fun Facts, Real Estate Tips | Tagged , , , ,

The Cost of Waiting – Northern CO Real Estate

The Cost of Waiting

It’s true, certain parts of our market are cooling off.  We are seeing fewer multiple offers, fewer bidding wars, and fewer inspection concessions.

However, homes that are priced right and in great condition are selling, and in many cases, selling quickly.

As buyers feel the market cool a bit, it may cause them to want to wait.  They sometimes feel like it’s a better choice to ‘wait and see what happens.’

The reality is, there is a real cost to waiting given two specific facts.

1. Interest rates will continue to rise

2.  Prices will continue to rise

Interest rates are a little more than 0.5% higher than a year ago and experts predict them to be another 0.5% higher by this time next year.

Prices have been appreciating at roughly 10% per year for the last four years.  Based on the numbers, we see that appreciation could be 5% per year for the next two years.

So, let’s look at a house priced at $450,000 today.  If prices go up “only” 5% for the next 12 months, that home will cost $22,500 more in a year.

And, if rates go up another half percent, the monthly payment will be $206 higher.  That’s an 11% increase!

In an environment of rising prices and rising rates, there is a real cost to “wait and see.”


If you want to be totally clear on all the stats, facts and trends in Colorado real estate so that you know what the future value of your home looks like, watch this video.

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Posted on September 7, 2018 at 1:56 pm
Meagan Griesel | Category: Blog, Colorado Real Estate, Fun Facts, Northern Colorado Real Estate | Tagged , , ,