DENVER -- A recent Zumper report shows Denver has the 16th most expensive rental market in the nation.
Many renters are looking to buy a home in order to avoid rent hikes.
Affordable housing and reduced down payment programs are making home ownership more accessible, but interest rates are on the rise, up to 4.4% from 3.9% in 2017 according to new market analysis.
Denver real estate expert Kevin Abruzino of KGA Properties tells the FOX31 Problem Solvers prospective buyers should be clear about how a rise in interest rates will affect their monthly budget.
“If you had a mortgage on (a $400,000 home) at 20 percent down and you had a half point change you're talking about a hundred dollars a month.”
Compared to some rental increases of 55 – 70% in Denver, the buyer would save money in the long run.
Abruzino adds that investing in property rather than renting is still the best way to control your cost of living while making a profit in a good market. “You have to ask yourself historically how real estate has performed and owning a home has outperformed renting.”
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