If you haven’t heard, unless you live under a rock, the FEDS are meeting on June 15th and they are going to raise the interest rates. Is the sky falling? Hardly!
Here are some key facts about mortgage interest rates and the market:
- Mortgage Rates are long term rates, not short term. Short term interest rates are associated with financial assets that have maturity of less than one year, and long term interest rates are associated with assets that have a maturity of more than a year.
- Are mortgage rates going up? Yes.
- The historical 30 Year Average Mortgage Rate is 7.77%. We have enjoyed low interests the past few years, but we are still way below the national average, great news!
- The market is still experiencing the lowest inventory in history. It is still a Sellers’ market.
- Are we going to see fewer homes sold this year? Yes.
- Is there a housing bubble? No.
- Will the housing market crash and prices fall in near future? No.
- Home prices are still predicted to rise over the next few years, just not at the hyper appreciation we have been seeing.
Bottom-line, the housing market is going to weather this most recent storm just fine, and it is still a great time to buy and sell in Northern Colorado.
