Today we saw new numbers from the Idaho Statesman reporting that after four years of declines, Ada county residential properties spiked almost 12% last year.
Right now we’re seeing rapid increases in housing prices coupled with increasing interest rates.
Even though we wish we could look into our magic globe and tell you what the future holds, our magic globe repair man has been out sick all week. So the best we can do is share what some economists believe about the housing market, as reported by Forbes today.
The chief economist at Zillow, Stan Humphries, believes that there is “no doubt” that interest rates will continue to rise over the next few years. Lawrence Yun, chief economist for the National Association of Realtors believes that rates will reach 5% by the end of next year.
Humphries explained that the market has two possible reactions to the increased mortgage rates. The housing prices could remain stagnant until individual incomes catch up, or housing prices could actually fall in markets where the prices have increased most dramatically.
Either way, our economists believe housing and interest rates are moving upward. In order to take advantage of the currently low rates, we encourage you to look into your mortgage and refinance opportunities.