Interest Rates & The Current Market
💰 Timing the Colorado Springs Market: Price vs. Rate
In the current Colorado Springs market, the core dilemma is simple: Would you rather pay a higher sales price or a lower sales price for the same home?
We understand rising interest rates can make buying seem challenging. However, if you are currently renting in the COS area and are able to qualify, we firmly believe that now is the optimal time to transition into homeownership.
The Colorado Springs Price Floor is Approaching
As of November 2025, many housing experts predict the "floor" for home prices in the Colorado Springs and El Paso County area is just a month or two away. [Note: This is subject to Federal Reserve actions, but current trends suggest the bottom is near.]
If you secure a purchase now, you are most likely to lock in the best possible purchase price—a price that may not be available again once rates normalize.
The Inevitable: Lower Rates Mean Higher Prices
History shows that once interest rates begin to decrease, home prices will start their increase again. Given the significant housing shortage across the Pikes Peak region, this rate decrease will almost certainly lead to renewed bidding wars and rapid price appreciation. The time to secure a lower purchase price is now, before the competition returns!
Your Four Strategic Options for Buying in Colorado Springs:
We present four scenarios to evaluate your next move in the COS real estate market, all pointing toward the immediate benefit of ownership:
- Buy Now, Rates Keep Rising: You will be relieved you acted, having locked in today's lower sales price. You start gaining equity immediately in a desirable location like Colorado Springs.
- Buy Now, Rates Drop: You can always refinance to the lower interest rate later! Many local lenders can absorb or roll in the closing costs of the refinance. You lock in a lower sales price and start gaining equity today.
- Buy Now, Rates Remain Steady: You will be happy you bought a year from now, as you've secured the current price and have a full year of equity building under your belt while rates remained unchanged.
- Wait and Rent: You continue paying rent, hoping rates drop back to the 4% range (which is highly unlikely—they are expected to settle closer to 5%). While you wait, home prices will most likely increase, and you will be helping your landlord build their equity instead of your own.
The choice is clear: Start your home search today and secure your best deal in Colorado Springs!