Mortgage rates are currently sitting at their highest level in two years, with 30-year fixed-rate mortgages averaging 4.32 percent and 15-year mortgages averaging 3.55 percent. Rising mortgage rates continue to be a concern when it comes to home sales and affordability; however, rising rates tend to indicate a strong economy – and strong economies are good for housing.
Interest rates are still historically low, compared to 6.14 percent for a 30-year mortgage in December 2006. Consumers looking to buy should consider taking the leap as there is still plenty of room for rates to rise.
There is no doubt about it that lending has changed in the last 10 years. In fact, it changes every year. Starting January 9, 2017 FHA dropped the mortgage insurance rate. FHA mortgages are important for low- and moderate-income buyers in particular because a lower down payment is required than with many conventional mortgage options. Buyers with lower credit scores may find more favorable treatment with an FHA loan than a conventional product as well.
I’m happy to share more information about trends in 2017. Email me today.
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Since Colorado voted to legalize marijuana in November 2012, a number of issues have arisen for home buyers. Homeowners have the right to grow marijuana inside their homes for personal use. According to CAR (Colorado Association of Realtors) “As a result, it is increasingly common for REALTORS® to encounter homes with existing grow facilities (or evidence of former grow facilities) as they tour properties with buyers.”
CAR also recommends “Inspectors should be made aware of any grow facilities that were in the home and should pay particular attention to any modifications that have been made to the home’s plumbing or electrical systems to accommodate hydroponic (water) grow systems or high powered grow lights. These modifications are often made by the homeowner – as opposed to a licensed contractor – and may not have been performed pursuant to applicable building code(s).”
Another area that seems to be a problem is odor. A non ventilated grow operation can permeate the home with the scent of “pot”. It can be an expensive fix to clean up the residue on walls and in carpet causing a homeowner or buyer additional expenses.
Marijuana has helped many people with epilepsy, pain management, cancer, and other ailments. With it’s popularity growing, the chances of a buyer buying a home that has had grow facilities or use in it, are more prevalent all the time. Colorado is at the forefront of this new frontier. The Colorado Association of Realtors put out a great article on the impact Pot has had on Colorado.
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