Interest Rates are High...But Calm Down

As if people’s love for telling Denver home buying horror stories wasn’t enough, now we have rising interest rates adding fuel to the fire.

Obviously no one loves paying interest, and the biggest downside is that a higher interest rate will affect your monthly mortgage payment and the total amount you can qualify for. But, most people buy a home because it’s the right time for them personally, and not because they’re trying to time the market…so don’t let it deter you from making an amazing long term investment sooner than later. Here’s my two cents on current mortgage rates + a few things to consider…

• It’s more important now than ever to work with an experienced + honest lender who will keep you informed of changes throughout the buying process and not try to bait and hook you by promising a low rate at the pre-approval stage just to give you an accurate market rate once you’re under contract.

• In reality, most homebuyers live in their homes for 3-7 years, so try to stop looking at mortgages like you’re going to pay it for a full 30 years. If you’re there a handful of years, or longer, chances are rates will dip at some point and you’ll be able to refinance at an opportune time to lower your monthly payment.

• The impact on buyer affordability could help offset some of the demand in our market, which would be so welcomed by many. We’ll see how this plays out in the upcoming months, but I’d 100% rather buy with a higher rate for a better purchase price…than pay 100k more for a house just because rates are low and the monthly payment is fine (*ahem* 2020).

• Regardless of where rates are at, prices are anticipated to continue to rise (albeit hopefully at a lower more sustainable level than we’ve seen the past two years), so the cost of waiting is substantial, and it’s important to take the big number of your purchase price into consideration from a long term investment point of view.