When is good economic news bad for Denver home buyers? The answer is when that news is one of the reasons Denver mortgage interest rates are slowly rising. That means home buyers will pay more in monthly home loan payments as Denver mortgage interest rates continues to rise.
One of our trusted mortgage lenders, Rebecca Hansen of Guild Mortgage, explains it this way.
Why are Denver Mortage Interest Rate Melting Up?
So, what is the thing to do? Obviously, the Federal Reserve Board is not to stop it’s tapering of buying those mortgage-backed securities anytime soon. In fact, it recently announced it will be accelerating the tapering more quickly than it originally planned last Fall.
So, buckle up! Rates are still very affordable even though they are off their lows. Mortgages are still very affordable by historical standards. And, those rates are likely to continuing increasing. So, home buyers might want to consider buying sooner rather than later.
Sure, it’s true that prices are at historical highs and eventually they might recede a bit. But, by then, higher rates will still produce higher payments. Most likely those pecky monthly mortgage payments will be higher even with lower home prices. Here’s one word of caution. Please, do not a home for the short term Consider buying if you expect to be in your home a minimum of 3-5 years.
Quiet Enjoyment of Home Ownership
Sure, the primary purpose of a home you own is to be a comfortable place to live, with a steady and predicable monthly home loan payment. Just do not expect it to be an investment bonanza in short term. It may not be.
But, over time, Denver home values have always increased. Eventually, your home may well be your largest and best financial asset too. But for now, find a place you can call home as a first priority. Settle in and relax! And, enjoy your own sweet home without worrying about a landlord raising your monthly payment or worse yet, selling your rental. Home ownership has always been one of bedrocks of financial security in America. That’s not likely to change soon.