Interest rates have risen significantly in the past 90 days (Nov - Jan 2011) - right now they are at about 5%. Prices, by and large, are flat in our Boulder Metro area but now your home will cost slighty more than in 2010. Let's just say that even if the price of a home is to fall another 10% this year, based on current rates, the cost of a home will increase if interest rates go up more than 1%. What does this tell us? Buyers should not worry where prices are going. They should be concerned where costs will be later in the year. There are some great deals in our market right now.
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