Buying a Denver Home vs. Renting a Home: Should You Do it Now or Later?

Buying a Denver Home vs. Renting a Home: Should You Do it Now or Later?

Posted by on Friday, March 7th, 2014 at 11:12am.

 

   

 

Buying a Home: Should You Do it Now or Later?  

Buy Now if you can, Rents in Denver and Colorado Going Up!!

 Last month, the Federal  Reserve, in a unanimous vote, decided to further decrease its bond   purchasing. The bond purchases were the government’s stimulus package created   to keep long term mortgage interest rates artificially low in order to help   drive the housing market. Most experts believe that tapering will cause   interest rates to increase as we move through the year.

Interest rates have remained  relatively stable since the onset of the tapering in December. This is   probably because the first round of increases had already been ‘priced into’   the equation last summer when rates skyrocketed by over a full percentage   point just on the speculation that tapering would take place later in 2013.Hour Glass

However, as we move forward,   most analysts believe rates will start to rise culminating in a rate close to   a full percentage point higher than current rates by this time next year. For   example, Freddie Mac, Fannie Mae, The Mortgage Bankers’ Association and the   National Association of Realtors have all recently projected rates to be   between 5-5.4% at this time next year.

The Bottom Line is...

If you are a first time buyer   or a move-up buyer, the cost of the mortgage on your new home will probably   increase as we move through the year. If the timing makes sense, buying   sooner rather than later may save you a substantial amount of money over the   long term in lower mortgage payments.

1 Response to "Buying a Denver Home vs. Renting a Home: Should You Do it Now or Later?"

Craig Adelman wrote: wow! this looks like super informative information... :) Posted on Friday, March 7th, 2014 at 11:26am.

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