The real estate market in Durango is heating up with increased sales of properties, and increases in values over the last six months. Much of this activity is driven by the availability of low interest rates. As the real estate market in the nation continues to heat up, many are concerned about the cost of future mortgages. For most borrowers, an increase of 1% in the mortgage rate has an impact of approximately 10% in what they can afford!
In the local Durango market, we are seeing low inventories in modest priced homes, and some multiple offers. Prices in these lower price ranges will increase in the near future, as there will not be the necessary inventory of homes to meet the demand.
There is an excellent article in Bloomberg Businessweek about the anticipated cost of future mortgages. It does suggest a slow increase in mortgage rates over the next two years, but it is their opinion that rates will remain historically very low. Please see the actual article per the link below:
http://www.businessweek.com/articles/2013-02-01/how-high-will-mortgage-rates-go
Regardless, buyers should find the best opportunities in the market today, to take advantage of the current market pricing, and the best interest rates possible.
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