How Will the Fed’s News Affect You?

So here you are, going about your business. Maybe you own a home, maybe you’re renting. Maybe you’re looking for the perfect house, thinking about selling the home you live in now, or pondering a refi.

So what will happen to mortgage rates? Although the Fed’s recent rate hike of .5o -.75% on short term loans won’t have a direct impact on long term mortgage rates (most borrowers still go for a traditional 30 year mortgage), lenders typically raise rates in advance of future increases. The Fed has promised to continue to raise rates in accordance with the strong state of the economy, and based on this information, lenders will raise long term mortgage rates.

Rates hit historic lows of 3.5% following the financial crisis, and you aren’t going to score a rate like that in the near future. The good news is though, rates are still awesome: 4.3% right now, on average. One interesting thing that happens when rates rise – because this may cause fewer people to refinance or make a home purchase, lenders sometimes start to relax their borrowing requirements.

Other factors that might impact your monthly finances: rising credit card rates, higher student loan payments and potentially higher car loan expenses…

teeter

So, bottom line, here’s what you need to know: interest rates are STILL awesome! And with a strong economy, chances are good you have a decent job, earning a decent wage, with pretty good job security. The Fed’s increase in short term rates means the economy is strong, and now is probably a great time for you to reach out to your favorite real estate expert to start your search for your right-size home – whether that’s an upsize, downsize, or finding a home that’s all yours.

Drop me a line! I’d love to help you search for a place to call home.

Jack Meyers

The Meyers Group
jackestate@aol.com
303.263.3050
Twitter: @jackestate

Advertisements

Help Wanted: Denver Construction Workers

Unemployment rates are a quirky thing…     construction-dude

Too high a rate of unemployment and the economy suffers as those without jobs are unable to make purchases; when unemployment rates are high, the real estate market and many other markets can slump, affecting the entire economy and even those blessed with stable, adequate or better employment.

Industries can also suffer when unemployment rates are too low; employment can fall so low it is difficult to find qualified help.

Such is the case in the construction industry in Colorado. While an ultra-low unemployment level in the industry nationwide is something to celebrate, Colorado’s level of construction unemployment is less than half that of the national level. Add this factor to the ever-increasing demand for housing across Metro Denver, and the result is an industry bottleneck. Homes continue to be in demand in our area, there is not enough supply, and there aren’t enough tradesmen available to add to existing inventory.

According to recent Denver Post coverage of the topic, the lack of a qualified construction workforce threatens to slow the state’s incredible economic momentum. It’s a catch 22 for construction workers outside the state who might consider relocating to Colorado. The likelihood of landing work in the field is high, but in part because of the trickle of new construction, so are housing prices – and availability remains scare.

And so – we wait. Wait for new construction projects including apartments and homes, hotels and business infrastructure, to carry forward inch by inch. Wait for a new generation of able-bodied construction workers to rise – choosing valuable, meaningful work in the trades over a “traditional” college education.

Interested in talking shop – about the building industry, the Denver real estate market or your next home purchase or sale? I’m here to help in any way I can.

Jack Meyers

The Meyers Group
jackestate@aol.com
303.263.3050
Twitter: @jackestate