Denver Mortgage Rates
Mortgage rates have risen from 3.5% before the last election to 4.2% in early January 2017, and the National Association of Realtors suggests a possible further rise in rates during the year to reach 5%. “Nationwide, it is estimated that the rise of mortgage rates from 3.5 to 4.2 percent increased the monthly payment by $75 while a rise from 4.2 to 5 percent will increase the monthly payments by $90,” Nadia Evangelou, a research economist with the National Association of Realtors, wrote in a blog post. Although higher mortgage rates have the potential to slow home price appreciation, the NAR expects that home prices will rise another 3.9 percent this year and 3.2 percent next year across the nation.
With a lack of inventory giving homeowners selling their properties the ability to command top dollar for their homes in 2016, often sparking bidding wars among potential buyers, it also presented a challenge to those selling; finding a replacement property they could afford. Many homeowners decided to stay put rather than move to a new home, choosing instead to invest their dollars into renovating their existing property, thereby increasing the home’s value and their enjoyment of it.
The Denver Metro Association of Realtors puts the gain of the median price of a home sold last year at 11.4 percent, down from 14.2 percent in 2015. Even though home builders scrambled to produce inventory for the house-hungry in 2016, they could not keep up with the demand on the market for both condominiums and single family homes. The Colorado Association of Realtors estimates the average price of a home sold in Colorado last year rose 10 percent, with both new listings and the inventory of homes available for sale in December at historic lows.
With the large number of young adults moving to the Denver area to take higher paying jobs, home prices are expected to continue their upward climb in 2017, and Denver is poised to rank among the top hottest real estate markets in the country once again. VeroForecast lists five Colorado cities (Denver, Fort Collins, Boulder, Greeley, and Colorado Springs) in their top 25 markets for 2017, with Denver in the lead with a projected 10.2% gain in home prices.
If you are looking to sell or purchase a home in the Denver area, contact Integrity Mortgage & Financial Inc., for assistance. Speak to a Mortgage Consultant by calling (866) 816-9810, or email us at firstname.lastname@example.org today. We look forward to hearing from you.