Barry Kunselman | 303.887.0588 | Contact Barry 

It is difficult to predict what interests rates will be next year, however The National Association of Realtors, Fannie Mae, Freddie Mac and the Mortgage Bankers Association all predict rates will hit 5% next 4th quarter.

So what does this mean for home buyers and home sellers?

The monthly payment will increase by $162.80 for a home worth $250,000. In years past when rates have increased some of my buyers decided to lower the amount they wanted to pay for a home, while others looked for ways to cut costs in their monthly budget so they could afford the house without lowering their desired purchase price. This may slow the market down slightly, but I do not see this as a bad thing because the Denver real estate market is currently sitting on a shortage of listings. Because there is such a demand to live in Denver I don’t see home prices dropping, I’m guessing they will stay stable.

For sellers this means your home may sit on the market longer but, I do not see the average days on market dramatically increasing. Maybe Denver home sales will get back to a more “normal market” where homes take a month or two to sell compared to the feeding frenzy we experienced last spring.

Thinking of purchasing a home today? I'm up to the challenge of helping you find, evaluate and negotiate the home of your dreams from a multitude of options on the Denver homes for sale list. Check out my website to search for available homes for sale. Contact me at 303-887-0588 for all your real estate needs.