Effects of Mortgage interest rates after Donald Trumps Election and how it will affect Denver local Real Estate Market

Interest Rates increased right after the presidential election from 3.5% up to close to 4%  

Rates slowly went back down after the first initital shock reaction from Trump winning the election. Unfortunitly rates are set to go up even more late in the year and will likely be closer to the 4.75% range or higher. Rates have been extremley low for a long period of time and we knew that that were foing to go up at some point.

 

How will rising interest rates affect the local Denver Real Estate Market?

I think the higher interest rates will definitely impact our local real estate market here in Denver Colorado. The main reason it’s going to hit Denver is that we have seen such a huge increase in housing prices over the last two years and the only way people have been able to afford these current prices is because of low 3% interest rates. I’m already seeing a huge slow down in the real estate market with homes priced above $400k the further you go outside of the city of Denver. I’m starting to see a lot of homes sit on the market longer and I’m seeing sellers with price reductions. This was something the real estate market hasn’t seen for the past year and half. So, in my opinion I think the Average price of a home in Colorado is going to come down a bit over the next two years. Colorado is a very desirable place to live and people are going to continue to move here from out of state and that’s going to help sustain the decline in market conditions. The increase of interest rates will naturally slow down the amount of refinances the mortgage brokers are doing and they will be more focused on offer new loan products for home buyers. 

Denver Market update 

  • Interest rates are going up 
  • Inventory above $400k is slowing 
  • Homes are siitng on the market longer 
  • Homes above $400k are seeing price reductions
  • Homes under $400k are still moving quickly 

 

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