INTERST RATES ARE TRENDING UP!
With the U.S. budget deficit reaching unheard of levels ($1.4 Trillion for the fiscal year ending September 30th) it is anticipated that interest rates will soon start rising. Former Federal Reserve Chairman, Alan Greenspan stated, “I’m very much concerned about the fiscal situation. An increase in long-term interest rates will make the housing recovery very difficult to implement and put a dampening on capital investment as well.” As proof, Wednesday's auction of the five year Treasury bonds did not go well with investors demanding higher interest rates in order to buy bonds issued by the U.S. Government. Those demands triggered interest rates on mortgages to rise as much as an eighth of a point on fixed rates and nearly a quarter point on ARM's.
The Denver Real Estate Market continues to stay steady and in some areas increase over last year's sales data. With the $8,000 first-time homebuyer tax credit still in affect until the end of April and interest rates still slightly below 5.0% the number of sales have stayed steady. So, if you are in the market for a new home, don't delay. This is the time to buy!