Now that interest rates have risen from the 3.5% range to the 7% range, will home prices decline to balance out the purchasing power? Looking at historical evidence, it shows that sharply rising mortgage rates tend to slow home price appreciation and affect housing market activity. However, nominal price appreciation in most of Colorado remains […]
Rising interest rates decrease purchasing power
In general, as interest rates rise, the homebuyer loses about 3% of purchasing power for every .25% in interest rate increase. Today’s market is tough on first time buyers. The inventory of homes and condos purchased by first-time buyers continues to be low, and along with inflation, home prices are being pushed upward in […]
Rising mortgage rates…To lock or not lock? That is the question!
To lock or not to lock, that is the home buyer’s choice. However, buyers need to understand this is a commitment from both the mortgage lender and themselves to close at the agreed upon interest rate. (Photo: Pexels). Over the last several years we have enjoyed record-low mortgage rates with a sense of stability. The most […]
Rising mortgage rates: Lock or not?
To lock or not to lock, that is the home buyer’s choice. Over the last several years we have enjoyed record-low mortgage rates that have, for the most part, been stable. The most recent peak in interest rates was November 2018 with an average reported rate of 4.81% for 30-year loans. Afterwards, the trend moved […]
Interest Rates Are At a Three-Year Low. Should I Refinance?
It’s time to consider refinancing your mortgage again! According to Freddie Mac, the average interest rate on a 30-year mortgage on February 6, 2020 was 3.45%. The last time rates were in this category was on July 7, 2016 when Freddie Mac reported an average interest rate of 3.41%. Rates this low don’t tend to […]
Locking Mortgage Interest Rates 101
Duane Duggan, with the Boulder Property Network at RE/MAX of Boulder, sits down with Jessica Shanahan of Premier Lending to discuss the hot topic of locking interest rates on a mortgage. How is a “lock” defined financially? Are there any requirements that need to be met in order to be eligible for a lock? How […]