Why Buying Now in Colorado Springs Makes Sense Despite Rising Interest Rates

5/30/20252 min read

What a roller coaster of news lately— with interest rates climbing back up to 7%, headlines predicting housing crashes, and social media flooded with mixed opinions. But here’s the reality: the facts are in, and for buyers eyeing Colorado Springs, it’s still a great time to purchase a home.

Yes, home prices have declined in several major U.S. cities. But according to the latest data from the FHFA House Price Index and CoreLogic Home Price Index (released today), Colorado Springs remains one of the strongest housing markets in the country. In fact, home values in the Springs rose 4.2% year-over-year, proving that local fundamentals still drive steady appreciation—even in a high-rate environment.

Steady Home Appreciation in Colorado Springs

According to the Federal Housing Finance Agency (FHFA) HPI® Top 100 Metro Area Rankings, Colorado Springs home prices appreciated 4.2% in the last year, outpacing many other U.S. cities.

This growth is driven by:

  • A strong local job market (especially in tech, aerospace, and defense)

  • A steady flow of new residents

  • A persistent housing inventory shortage

Unlike volatile markets, Colorado Springs has shown long-term price stability and demand—making it a smart place to buy and hold.

See for yourself: FHA House Price Index

Interest Rates vs. Appreciation: Think Long-Term

You might be tempted to “wait it out” hoping for lower rates, but let’s look at the math:

  • Today’s Home Price: $450,000

  • Appreciation (4.2% in one year): $18,900

  • Future Price: $468,900

If you wait a year, you could end up paying nearly $19,000 more—and there’s no guarantee rates will be much lower.

Buy the Home Now, Refinance Later

Today’s mortgage rate doesn’t have to be forever. You can refinance when rates go down—but you can’t go back in time and buy a home at yesterday’s prices.

Buying now means:

  • Locking in your home before prices increase

  • Starting to build equity immediately

Why Colorado Springs Is Still a Smart Buy

  • Growing job market attracting well-paid professionals

  • Strong community and quality of life (mountains, parks, safety)

  • Lower inventory levels = more competition = price support

  • Affordability advantage compared to Denver

The Bottom Line

Despite the national headlines, Colorado Springs is a local market that defies the national trend. With a 4.2% appreciation rate and growing demand, today’s buyers are setting themselves up for long-term success.

Even with a 7% mortgage rate, the numbers—and the neighborhood vibes—show that now is still a good time to buy.

Need help deciding if it’s your time to buy?
TuLender is here to break down the facts, not the hype—and guide you through every step of homeownership.

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