Interest Rates & The Current Market

A road sign pointing towards inflation against a blue sky.

💰 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 May 2026, 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!

Frequently Asked Questions

Please reach us at Nathan@NathanJohnsonTeam.com if you cannot find an answer to your question.

Is now a good time to buy a home in the Colorado Springs market despite high interest rates?

Yes, if you are currently renting and can qualify, buying now is still the recommended best approach. By buying now, you secure a home price that is likely lower than what you would pay when interest rates start decreasing, which will inevitably cause home prices to increase and likely restart bidding wars due to the housing shortage.

How does a buyer manage high interest rates if they buy a home now?

If interest rates drop in the future, you have the option to refinance to the lower interest rate. Many lenders can help roll in or absorb the closing costs associated with a refinance, allowing you to secure a lower monthly payment while benefiting from the lower initial purchase price.

When are home prices in the Colorado Springs area expected to stabilize (find the 'floor')?

As of January 2025, many experts predicted that the 'floor' in Colorado Springs home prices was likely only a month or so away. The ultimate timing depends on the actions of the Federal Reserve (FED), but current trends suggest the bottom of the market is near, making it an opportune time to buy.

What are the risks of waiting to buy in hopes that interest rates drop significantly?

Waiting carries the risk that you continue to pay rent (helping someone else build equity) while home prices continue to increase. There is no guarantee that rates will return to the 4% range; experts often predict they will settle closer to 5%, meaning you would likely pay a higher sales price for the same home later.

Why is buying now financially smarter than waiting for lower interest rates?

Buying now allows you to secure the lowest possible sales price before the market heats up again. You can always refinance to a lower interest rate later, but you can't go back in time to secure a lower purchase price. Buying now ensures you start gaining equity immediately.