With the unprecedented growth in the Denver metro area over the past couple years, it was only a matter of time before home prices in the Mile High City jumped over the $500,000 mark. According to
Mortgage Rates Reach Five Month Low
If you’re considering jumping into homeownership, now may be a great time as mortgage rates have hit their lowest points in the past five months.
According to the latest data released last week by Freddie Mac, the 30-year fixed-rate average dropped to 3.97 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.08 percent a week ago and 3.59 percent a year ago. The 30-year fixed rate hasn’t dipped below 4 percent since November.
Looking at the 15-year fixed-rate average, that dropped to 3.23 percent with an average 0.5 point. It was 3.34 percent a week ago and 2.85 percent a year ago. The five-year adjustable rate average fell to 3.1 percent with an average 0.4 point. It was 3.18 percent a week ago and 2.81 percent a year ago.
Though mortgage rates are falling, the number of mortgage applicants is actually on the decline. According to the latest data from the Mortgage Bankers Association, the market composite index – a measure of total loan application volume – decreased 1.8 percent. The refinance index was essentially unchanged, slipping 0.2 percent. The purchase index fell 3 percent. Refinance mortgages accounted for 42.4 percent of all applications.
There’s uncertainty surrounding when and if rates will begin creeping back up, but the numbers are promising if you’re ready to take the plunge. In Denver, buyers need to move fast so if you’re considering purchasing a home it’s best to get your finances in order and secure a great rate now.
Ready to start checking out what Denver has to offer? Contact Metrowest today – we’d love to show you around!
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