Interest Rates - Higher For Longer?

Interest Rates - Higher For Longer ... What is going on for Colorado Springs home sellers, buyers, and investors?

Many potential home buyers are waiting for rates to drop. There are three key things to consider about today’s interest rate market.   

1. Goldman Sachs predicts rates will decrease only about 0.5% by year-end.
   
   
2. "Inflation pressures continue to run high, and the process of getting inflation back down to 2 percent has a long way to go," Jerome Powell, Chairman of the Federal Reserve. The Fed is likely to keep rates higher for longer.
3. Unemployment is near all-time lows, and wages continue to grow.  Until the labor market softens, rates will likely stay in their range.

As you consider your options, remember your Economics 101, supply and demand.  There is enough buyer demand to keep prices rising at today's rates.  That demand will increase if rates drop.  It may be a great time to start building equity. 

What You Need to Know 

For Home Colorado Springs Buyers

Inventory ticked up slightly last week, but no data indicates we will see an increase in inventory this year.  We will remain supply-constrained, putting upward pressure on prices.

For Colorado Springs Sellers

Listings with price reductions ticking up from 33.1 to 33.7%.  Prepare your sellers for the seasonal slowing and ensure they are ready to act.

For Colorado Investors

Inflation is down; wages continue to grow—good news for rents.  Rent growth is leveling off but is up 2.4% this year. Vacancy rates climbed from 5.8% to 6.4% in June but are still at 30-year lows.

Questions? We have answers!! 719-434-7525

Posted by: Derek and Mariana Wagner
The Artisan Group, Keller Williams Premier Realty
25 N. Spruce Street, #200 - Downtown Colorado Springs
Top Colorado Springs real estate agents: 719-434-7525

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