Buyers and Sellers should BOTH be curious about Real Estate Mortgage Rates
2015 was a great year for low real estate mortgage rates but as you and I both know, it’s not going to last and 2016 will bring incremental increases that directly affect real estate buyers and indirectly affect real estate sellers. It will therefore impact our hot sellers market (a little later in the year).
Check this out:
I expect that buyers will get a jump start earlier in 2016, trying to make up for the one that got away in 2015, hoping to reduce their competition by braving our snowiest months and securing a property with a locked-in low interest rate.
As usual, I caution real estate buyers to get to know the market first so they can feel good about their decision to buy, but also to take time to get to know their own needs and preferences (and pick an agent who will help remind them of these, when the going gets emotional).
Sellers… Be prepared. The buyers are coming but they will NOT buy your overpriced, badly maintained, dirty or dumpy house if it is priced similarly to the one that shows nicely and is priced appropriately for the value it brings. Just sayin’. Instead, get great advice on staging, cleaning and packing now. Use the cold winter evenings to mentally and physically get ready for selling and you will not be disappointed with the 2016 real estate market along the Front Range.
Real Estate Mortgage Rates are still great!
By locking in a low rate this year, you are guaranteeing your monthly payment for up to 30 years. Trust me when I tell you, we often just don’t know how lucky we are in the US with our lending system. For example, in New Zealand people generally only lock in their rate for TWO years. And in 2 years you head on down to the bank and sign up for your new mortgage rate – whatever it happens to be at that time! Why don’t people like the long term loans? Because they come with high pre-payment penalties! Yuck!