The new year is but a baby, with months to come as it takes shape. What will it bring us financially?
In terms of the local and national economy, as well as the housing market, we can rest assured, according to experts. While most signs point to things slowing down, the outlook is encouraging overall.
Here are some specifics, as reported by various media outlets:
Mortgage interest rates: Mortgage rates are expected to rise to 5.5% or 5.6%, but it’s important to put this into perspective. Even with an increase, rates are still low, historically. Consider the eye-popping rate of 18.6% that homebuyers faced in 1981, an all-time high. The predicted change for 2019, is modest by comparison.
Housing bubble?: As prices for Denver metro homes rose to unprecedented levels last year, many fretted that this might signal a housing bubble. But experts aren’t worried. “In tight markets, housing prices can grow faster than the rate of inflation but that doesn’t mean a bubble is being created,” notes The Motley Fool financial website. Although rising interest rates have contributed to a slowing market locally, demand is still strong and inventory relatively tight.
Denver economy: According to the University of Colorado’s 44th Colorado Business Economic Outlook report, containing input from more than 100 experts, the local economy should continue the momentum of 2018, but at a slower pace. The report predicts that while a tight labor force, higher interest rates and a slowing U.S economy will impact the local economy, Colorado’s population is expected to increase by 50,000. This will help fuel the economy, which is predicted to grow 2.7% this year, vs. 2.9% last year.
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