The Federal Reserve raised their benchmark interest rate 0.25% this week.
Some perspective is in order…
While the Fed was raising their rates this week, mortgage rates actually dipped lower (although slightly).
Mortgage rates today on a 30-year loan are essentially 4.25%.
The long term average for mortage rates, going all the way back to 1970 is 7.5%
For every 1% rise in rates, there is a corresponding 10% impact to the monthly payment.
Mortgage rates have increased about 0.75% since the election.
Most economists expect rates to increase another 0.5% by year-end.
Click HERE to read a great article that goes a little more into depth about what this means for homeowners.
We are watching mortgage rates closely and will continue to keep our customers updated as to where the experts think they are heading. Contact us directly if you have any questions. (970) 460-3033.
Pretend that customer walks into our office and tells us they are looking for a single family home in Fort Collins. We would tell them that there are 314 to choose from. But if they told us their price range is up to $300,000, their choices would be limited to just 10 homes.
Single family homes priced under $300,000 only represent 3.18% of the total inventory in Fort Collins. This is a big reason why buyers are opening up their search to communities that surround Fort Collins.
Here’s a snapshot of the major Northern Colorado markets:
- Loveland: 176 Homes For Sale/15 Priced Under $300,000
- Windsor: 151 Homes For Sale/6 Priced Under $300,000
- Greeley: 98 Homes For Sale/33 Priced Under $300,000
- Fort Collins: 314 Homes For Sale/10 Priced Under $300,000
Last week Windermere’s Chief Economist Matthew Gardner joined us for our annual Market Forecast events in Colorado. We were pleased to host over 500 customers at two events in Denver and Fort Collins.
Here are some of the big takeaways that we shared:
- Interest rates will increase to 4.6% by the end of the year
- First-time buyers are back and will make up 47% of all buyers in 2017
- Inventory will remain at record lows and will continue to drive up prices
- Appreciation is expected to be between 9% and 7% across our Front Range markets
- Home builders will get creative in order to hit lower price points – we will see more “tiny homes” and more homes without basements
Here are some fun “Did You Know?” stats as we wrap up 2016 (arguably one of the most fascinating years in the history of Northern Colorado Real Estate)
- This year the median price of a home surpassed…
- $350,000 in Fort Collins
- $300,000 in Loveland
- $250,000 in Greeley
- 2,281 homes were sold in Fort Collins this year
- That’s 133 fewer than last year
- Windsor had 197 more home sales than last year
- The only major market with considerably more sales than 2015
- Today, as we finish 2016, there are only 10 single family homes on the market in Fort Collins priced under $300,000.
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Check out what’s happening in the multi-family market in Fort Collins.
The number of condos and townhomes for sale is way down compared to last year. 35% fewer new listings hit the market in November 2016 versus November 2015.
Of course that means prices are up, 15% to be exact. The average price for multi-family in Fort Collins is now at $282,000.
Who would have thought that one day the average price for a condominium or townhome in Fort Collins would be $300,000? Well, that’s close to being a reality.
The City Manager for Fort Collins, Darin Atteberry, recently visited our weekly sales meeting. He had several interesting and valuable facts to share, including this…
Based on the City’s research, Fort Collins will grow by 100,000 people over the next 25 to 32 years. That will bring the population to approximately 255,000 people. It means Fort Collins will essentially add the equivalent of Boulder’s population over the next two and a half decades.
100,000 people will require 40,000 housing units. That equates to 1,600 new homes/apartments/condominiums/etc. per year for the next 25 years.
If you are curious where all of these people with live and how Fort Collins will accommodate them, join us at our Third Annual Market Forecast event on January 19th! Windermere’s Chief Economist, Matthew Gardner, is flying here all the way from Seattle to present to us along with Eric Thompson, president of Windermere Colorado. Just visit www.WindermereForecast.com to reserve your seat.
Since the election interest rates have jumped from 3.77% to 3.95% according to the Mortgage Bankers Association.
“This week’s increase in mortgage rates, being dubbed the ‘Trump Tantrum,’ is the biggest one week increase since the ‘Taper Tantrum‘ in June 2013,” said Bankrate’s chief financial analyst Greg McBride.
Economists say the anticipation of Trump’s pledged spending plans and tax cuts have investors anticipating some inflation and a dose of adrenaline to the economy which have caused a great deal of volatility in the market.
Many economists believe that we are now seeing the beginning of a long-term rise in interest rates.
source: Inman News
First-time buyers can borrow with little down, but that may not be wise
Financial planners warn: "Borrowers should not overlook the true measure of home affordability: monthly cash flow."
Is your down payment going to affect your cash flow in the end? Check out this article to see what they suggest.
Are you on the fence about buying a new home? Rates are at an all-time low and just dropped to 3.41%! Time is running out though, history shows that rates will have to increase to keep the economy going strong.
Check out the link to read more. http://finance.yahoo.com/news/people-refinancing-mortgages-crazy-000000183.html