With a roaring jobs report, and the economy growing in the third quarter at an annualized rate of 3.5%, wages up, an unemployment rate well below 4%, and amidst high consumer confidence levels, the Fed is almost sure to raise the interest rate to 2.5% at their December meeting. This will be the fourth interest rate boost this year, deployed as a measure against unsustainable growth.
As mortgage rates often move in anticipation of the Fed meeting and possible/probably rate boosts, it no surprise that the week of November 1-8, 2018 saw a jump in mortgage interest rates. Freddy Mac pegs the average 30 year fixed rate mortgage at 4.94%- a seven year high. It’s notable that we are still below 5%, a number that seemed unattainable not that many years ago. Net net: Rates have climbed, in response to strong economic numbers, but remain historically low over the long arc. And for wealth building, using someone else’s money at 5% to buy an asset that requires only a down payment but allows you to build equity on the entire value of the asset over time is a pretty good tool
While the lift in interest rates has slightly cooled real estate demand in some markets, Summit County remains busy; though we’ve seen a predictable seasonable decrease in the number of buyers as the peak Summer sales season rolls into Fall. The amount of available listings has consistently lessened over time, as have the days on market between list and close. So the opportunity for the winter buyer is there are fewer other shoppers out there. In a market this competitive, the pressure is never truly off, but there is some relief to be found in the winter months.
The 17 brokers at Breckenridge Associates Real Estate study the market data, every month, and are experts at finding windows of opportunity for you and your family. Breckenridge Associates Real Estate is ranked in the top 5 of all real estate offices in Summit County for every single metric used to measure success and service. We’ve participated in over a quarter of all transactions in Breckenridge in 2018 and are are the number one office for sales over a million dollars. Call today to find your broker and your new home.