You can download the 4-page PDF here: Gardner Report PDF Download
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|
First things first, this is your last call to register for our Annual Forecast. If you want clarity on what is happening in the market, this is the event to attend. We will be live at 5:30 Thursday the 18th at the Marriott. RSVP to www.windermereforecast.com
Now, what’s going up? According to our Cheif Economist Matthew Gardner, interest rates. His prediction for 2018 is that rates will rise roughly 0.5% up to 4.4%.
That means a buyer’s purchasing power will go down by 5%. Even if prices didn’t increase at all, a buyer’s monthly payment would go up 5% because of a measly 1/2% increase in interest rate.
By Matthew’s own admission, rates have baffled forecasters for the last few years. Unusual forces have kept them artificially low for a sustained period of time. But even a small rate increase like Matthew predicts will have a big effect on potential buyers.
To hear our predictions for the 2018 market, join our live Market Forecast event on January 18th at the Marriott in Fort Collins. Back by popular demand is Windermere’s Chief Economist Matthew Gardner who will give you valuable and interesting insights into the real estate market. Reserve your spot at www.windermereforecast.com
Today we will take a fun trip down memory lane.
Did you know that it was the fall of 1981 when mortgage interest rates hit their all time peak? Yes it was this time 36 years ago when 30-year mortgage rates hit 18.39%
Yikes!
It’s important to note that in those days, not many home buyers were opting for a 30-fixed loan because rates were so high. There were a lot of people looking at adjustable rate products as a way to reduce the monthly payment.
Just for fun, let’s look at what a monthly payment would look like if those same rates from 1981 existed today.
If rates were 18.39% today, a $350,000 home with a 20% down payment would have a monthly principal and interest payment of…
$4,309! Yikes!
Thank goodness rates aren’t that high today. They are actually about 15% lower!
Today’s 30-year rate sits at 3.83% (which by the way is roughly half of the long term average).
A monthly principal and interest payment on a $350,000 home with 20% down is…
$1,309. Three thousand dollars lower than it would be using 1981 ‘s rates.
For a detailed look at what’s happening across Colorado, request our quarterly market report called “The Scoop.”
The housing market is remarkably tight across the U.S., and you may be wondering if you should wait for home prices to slow before making your move. Windermere’s Chief Economist, Matthew Gardner, shares why waiting could end up costing you more money in the long run.
Should You Wait out the Housing Market?
The housing market is remarkably tight across the U.S., and you may be wondering if you should wait for home prices to slow before making your move. Windermere's Chief Economist, Matthew Gardner, shares why waiting could end up costing you more money in the long run.
Posted by Windermere Real Estate on Friday, August 18, 2017
You can download the 4-page PDF here: Gardner Report PDF Download
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|