Colorado’s housing market has been hot for nearly a decade now with homes selling at higher prices than ever before.
For months, the economy has been on a rollercoaster as Americans try and navigate inflated prices on everyday purchases from gas to milk and even their homes. In an effort to try and slow spending, and to also avoid a recession, the federal government has been increasing interest rates. “ ‘Do I need to bring my price point down because of all my other expenses?’ I think it is a very legitimate concern people have, and I think that is why we are seeing a lot of hesitation,” Holsten said. “I, myself, am buying a house right now. And, as a real estate agent, it is a very concerning thing to watch rates go up.”
Holsten wouldn’t have encouraged his clients to use an adjustable-rate mortgage, or ARM just a few months ago. They are designed to have lower interest rates for a short period of time at the start of the loan, with a set date of when they jump to a significantly higher percentage. ARMs often allow buyers on more restricted spending levels to purchase a home at an affordable rate in hope that their financial situation at a later date is more expendable.
Will push some on the street