If you are thinking about making a move, investing or refinancing, now might be a good time!
Escalating tensions over a trade war with China sent investors rushing to the relative safety of the bond market late last week.
That pushed the yield on the 10-year Treasury, which mortgage rates loosely follow, down sharply.
The average rate on the popular 30-year fixed mortgage hit 3.70% last Friday, the lowest since November 2016. That rate will likely dip even lower Monday, as bond yields continue to fall.
The drop last week meant that 8.2 million 30-year mortgage holders could likely qualify for a refinance and save at least 0.75% off of their current interest rate by doing so.
The size of that population, however, is still very sensitive to even the slightest rate moves, since so many borrowers have already refinanced to very low rates. Just a one-eighth of a point move lower could add another 1.5 million borrowers to the eligible refinance pool, and the same move in the other direction would knock 1.3 million out.
Lower rates have also increased the buying powerfor prospective homebuyers looking to purchase the average-priced home by the equivalent of 15%, meaning that they could effectively buy $45,000 ‘more house’ while still keeping their payments the same as they would have been last fall.
As affordability pressures have eased, it also appears to be putting the brakes on the home price deceleration that has been tracking since February 2018.
Rates are now incredibly favorable for both
+ What do homebuyers with kids look for when searching for a new home?
+ Give your home a mini-makeover.
+ Slow down! And watch for lower speed limits on many Denver streets.
+ Cryptocurrency, stocks, or real estate – where are investors putting their cash?
+ 2146 new listings hit the market this week – significantly fewer than last week.
Let me know if you have questions about anything home or Real Estate related, if you’d like to get out and see some of the homes that are for sale, or if you are wondering what your home might be worth today.
Open House Schedule
See some beautiful homes across the Front Range this weekend!