loan Archives - Best Realtor Windsor and Fort Collins

A Rate-Induced Pop

by Rondi duPont

The recent drop in mortgage rates triggered a measurable uptick in sales activity.

So far through the first 10 days of November, pending activity in Northern Colorado is up versus the same 10 days last year.

This is despite interest rates being higher than they were last year.

Mortgage rates just had their biggest one-week drop in over a year and buyers clearly responded.

Pending sales through November so far are up versus last year:

48% in Larimer County

20% in Weld County

Corona Rates

by Rondi duPont

Interest rates on a 30-year mortgage right now are just about the lowest they have ever been in history.

So, what gives? Why are rates so low? It turns out that the coronavirus is pushing rates down to historic lows.

The virus is causing uncertainty in the global financial markets. When there is uncertainty, there tends to be a flight from stocks into bonds.

Specifically, there tends to be a flight to U.S. Treasuries.

High demand for U.S. Treasuries means that the interest rates on those bonds goes down.

30-year mortgage rates track the rates on the 10-year Treasury and the 10-year Treasury just hit their lowest rates ever at 1.31%.

The uncertainty around the virus will likely keep rates down for the foreseeable future.

If you haven’t done so already, I encourage you to reach out to your mortgage lender to see if you would benefit by refinancing your loan.

If you would like to see a video recap of our annual Market Forecast you can watch that HERE.