Low Interest Rates Delight Shoppers: Deals on Colorado Springs Homes
Decreasing, albeit wavering, interest rates are helping many buyers in the Colorado Springs homes market to save money. The experts expected the average rates for a 30-year fixed mortgage to be up to 5.5 percent by now. Truth be told, the current average is around 4 percent and the fixed-rate loans are costing almost a half a point less than they did last year.
Buyers can qualify for a bit more home. For some Colorado Springs homes shoppers, the difference means extra wiggle room. Maybe it’s a fourth bedroom or a finished basement. Perhaps a larger lot or more amenities. But the 1.5 percent difference in interest rates can mean a better home.
Alternatively, lower interest rates can mean lower monthly payments. Many of the buyers in Colorado Springs and El Paso County prefer to have a little more spending money every month. So instead of moving up to larger homes, these buyers delight in the idea of having extra cash at the end of the month.
The record low in recent times for average rates on a 30-year fixed mortgage was reached in December 2012. The rate was 3.5 percent. The average rate was 4.7 percent in January 2014. So we see why some buyers are getting back into the Colorado Springs real estate market in hopes of finding the right properties before the rates turn around again.
Another way homebuyers save money is to opt for the 15-year fixed mortgage. Currently, the average interest rate for this loan is approximately 3.25 percent. The record low was established in May 2013 at 2.75 percent.
There is also good news for those buyers who seek the 30-year fixed jumbo loan. While the record low from May 2013 was just under 4 percent, today it is hardly above 4 percent.
Reasons given for the lower rates are somewhat complicated. Expectations of rising rates came from the ending of the intervention by the Federal Reserve in November 2014. During the economic downturn, the mortgage market has been sustained by the large number of. These days about 60 percent fewer homeowners refinancing. So lenders want to do business and are attempting to entice buyers into the market.
Rising house prices is another major factor. To sustain a robust business, lenders need homebuyers to apply for mortgages. Offering lower interest rates, they can capture some of the market. Lenders are also processing and approving loan applications more quickly than they have in the past. Another delight for Colorado Springs homebuyers!
Assistance Buying/Selling Colorado Springs Homes
For more information about Colorado Springs real estate, call Ann Heiring RE/MAX Realtor at 719-440-1010. In appreciation for those who serve our nation, Ann offers rebates for active and retired military.
Ann offers clients will excellent professional training and experience. Her credentials include the following: Realtor®, Certified Residential Specialist (CRS), Military Relocation Professional (MRP), Military Residential Specialist (MilRES), Accredited Buyer Representative (ABR), Seller Representative Specialist (SRS), Certified Negotiation Expert (CNE), Graduate, Realtor Institute (GRI), “At Home With Diversity” Certified (AHWD), Certified Distressed Property Expert (CDPE), Senior Real Estate Specialist (SRES), e-PRO Certified (e-PRO), and Short Sale & Foreclosure Resource Certification (SFR).