The Federal Reserve meetings being held on March 14-15, 2017 have people wondering if interest rates will go up again.
Marketplace (03/13/17 – Let’s do the numbers on health care) seems to share the common opinion with the outlets mentioned below. Interest rates are likely to go up during the meetings of the Federal Open Market Committee.
What does this mean for people who want to buy real estate? The cost of borrowing money can go up. But, in buying a home, interest rates are only one small part of a big financial picture.
I am a Realtor® and I specialize in property, not finance or lending. Please consult an appropriate professional with any questions you may have. I can refer you to some very good ones.
The Federal Reserve has an extensive website with volumes of information, and links to their YouTube Channel.
What Would a Higher Interest Rate Mean to Real Estate in Colorado?
Not much, in my opinion. I mean, things will happen. People may be more hesitant to buy. Sellers may be more reluctant to sell, because they secured a very low interest rate.
I don’t think that the interest rate, where it is now, and where it is likely to go over the coming Fed meetings, should stop people who want to be a homeowner and qualify to be a homeowner from becoming…you know, a homeowner.
Don’t let a Higher Interest Rate Stop You From Buying a Home in Fort Collins
(Check publish date and data on this post, things change!)
The status of your credit, how much money you have saved, or have in equity in another home; your employment and payment history, your sources of revenue, your outflow of cash to pay for your life, where you need your physical location to be—all of these things are SO much bigger deals in the purchase of a home than the interest rate.
If you add all of those things up and you have a result that allows you to buy a home, and you don’t because of the interest rate? Well, I’m a Realtor® because I believe that American home ownership is one of the few ways that regular working folks can build financial leverage in their lives using a payment that they are already making, so I wouldn’t be on board for that plan.
Not everyone should be a homeowner, but I am in support of homeownership, at this interest rate, and probably at a higher interest rate, though I will make that decision if we arrive there.
Consult a lender for specific advice on what a good plan would be for you. Use a certified and licensed Realtor®, and form a good team around you. It’s a big purchase and sale. It’s not like buying a car. It’s about a million times better.
I would love to be your Realtor®. Please let me know if I can help you. 🙂