Homebuyers and home sellers have a big advantage with this steep rate drop
If you’re looking to buy a home in Denver’s blazing hot housing market, right now is a good time. Not only is spring traditionally a time when home sellers put more homes on the market, but this week homebuyers have been given a gift in the form of steeply falling mortgage rates.
According to CNBC, the current average rate for a 30-year fixed rate conventional home loan fell to 4.06 percent. The previous week the average was 4.28 percent. To put this in perspective, rates at this in 2018 were 4.40 percent.
Why are rates so low?
The falling rates are directly connected to the Fed’s decision not to move forward with proposed rate hikes for 2019.
While this low-interest rate is a fantastic advantage for homebuyers, it’s also a boon for home sellers, especially with spring and early summer traditionally being the busiest time of the year for home listings and home sales. Lower interest rates for home buyers means more purchasing power, which encourages home sellers to push for higher sale prices.
It’s a pattern that has helped contribute to Colorado’s lack of housing inventory over the past seven years, along with the surge in home prices.
These low rates could change soon
If you’re considering signing a contract to purchase a home, this might be a good time to lock in a rate. This could also be a fantastic opportunity to refinance, especially if you made a home purchase in the second half of 2018 when interest rates were much higher than they are at this time.
Next week the monthly employment report is set for release by the Bureau of Labor Statistics. Data from this report could contribute to another dramatic shift in interest rates. You can never predict what will happen with rates, but there is no denying that the current interest rates are very attractive.