Have you heard that the interest rates have increased? What does this do to the real estate market? How does it affect people who want to buy a home?
Today, Deborah Elliott-Shultz welcomes Ryan Herbig of American Liberty Mortgage to discuss what the rising interest rates mean for buyers and homeowners.
With a .25% increase in interest rates on a home loan, this means that a person can qualify for $10,000-$25,000 less than the previous rate. We’re now 1% higher and interest rates are projected to continue going up. Incomes are going higher, jobs are being creating, and there is speculation on increasing job growth and inflation. Which also means interest rates will continue to rise.
Home prices in the Pikes Peak region have gone up because people have been moving into El Paso County and people who had foreclosed or gone bankrupt during the recession are now able to buy homes again. Since there is a housing shortage in the area, coupled with the influx of new buyers in the area, prices for homes are going up.
But so are the interest rates and it’s causing problems with buying power. The most affordable place to buy a home right now is in Pueblo. The new big question: do you want to commute? For Fort Carson, the commute isn’t too bad.
Some people are thinking about refinancing in order to update their home or to pull some of their equity out. Every situation is unique and, therefore, it’s important to look at your situation. What’s your current rate and current loan? What are your future goals? Refinancing is more of a long term positive, not so much a short term positive. There are a lot of factors playing into whether refinancing is a benefit. Best to speak with someone who is local in order to make an honest assessment whether a refinance is beneficial for you and your situation.
When it comes to mortgage lending in today’s market, there are so many things to consider. Come listen as Deborah and Ryan discuss many of the different options and things to look for in the coming months with regards to the real estate market and mortgage lending.
If you would like to pre-qualify, have credit issues, are considering a refinance, or you don’t know exactly where you stand? Call Ryan Herbig of American Liberty Mortgage at (719) 228-6055 or on his mobile at (719) 659-0043. Property values are supposed to go up 6-10%, whereas interest rates are only projected increase of .5-1%. So, now is the time to buy.
Interested in selling or buying? Interview at least 3 agents, including Deborah Elliott-Shultz at (719) 641-1357. Mia Bella Properties is known for being a locally-owned company and home of the flat listing fee. To find out how MiaBella Properties is making your real estate experience more affordable, go to CityofCS.com and follow the real estate links.