Interest Rates are SOOO low, now is the time to buy in Highlands Ranch
According to a Denver Post article about the interest rates in Highlands Ranch, a nice article for a change.
The lowest mortgage rates since 1971 are propping up the metro-area housing market, giving consumers an incentive to lock in low rates on home purchases.
It’s the best news the market has seen since the expiration of federal tax credits aimed at spurring homebuying activity, some real-estate agents say.
The average rate for 30-year fixed- rate loans dropped to 4.69 percent, from 4.75 percent last week, mortgage company Freddie Mac said Thursday.
That’s the lowest point since April 1971, when Freddie Mac began tracking rates. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.
Low mortgage rates are the one thing that’s helping housing sales, said Chris Mygatt, president and chief operating officer of Coldwell Banker Residential Brokerage in Denver.
“It is helping soften our landing from the tax credit ending,” Mygatt said.
Buyers had to have a property under contract by the end of April to qualify for an $8,000 federal tax credit for first-time buyers or a $6,500 tax credit for move-up buyers. As of today, they needed to close.
The high-end market, which had been largely unaffected by the expiration of the tax credit, is seeing a surge in sales as a result of the lower interest rates, Mygatt said. A year ago, the rate for a jumbo loan (more than $417,000) ranged from 6.25 to 6.75 percent. Today, it’s about 5.75 percent for a 30-year fixed-rate.
“That’s what we need to have happen to fuel that upper-end market,” Mygatt said. “The availability of quality jumbo product is for the upper-end market what the tax credit was for the under-$300,000 market.”
Still, the news Wednesday that national sales of newly built homes fell to a record low in May is likely to have a negative impact on the housing market, said Mike Burns of Re/Max Professionals Inc.
“Consumer confidence is low in real estate,” he said. “But in my 20 years in real estate, I don’t know that I’ve ever seen a better time (to buy) when there was a combination of low interest rates and fairly low housing prices.”
Mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys.
The Associated Press contributed to this report. Margaret Jackson: 303-954-1473 or firstname.lastname@example.org
So now that you have had a time to digest the info on loan interest rates, give me a call to discuss your purchase of your next home in Highlands Ranch, at 303-888-2488