Are interest rates really in the 5% range again in Denver? The truth is sadly,yes. While rates have crept down a bit the past few days, I spoke with three lenders last Thursday who were quoting 5.125 to 5.25% for a thirty year fixed rate for buyers with excellent credit. Unfortunately, the days of high 3% rates are more than likely gone. The good news is that rates in the high 4's to low 5's are still excellent in terms of historical standards. And the lesson here should be that if you have been thinking of buying or refinancing, don't wait a second longer, do it now.
The graph below is pretty telling about interest rates and where we are heading. People always say they are waiting for the bottom to hit in the Real Estate market, but the bottom of the mortgage market can be just as important. In speaking with top lenders in the Denver area, most are pretty certain the short window of 3 and 4% rates are gone. The Fed is doing their best to keep the rates low. A lot of it depends on how holiday sales come back and if they show signs of improvement in the economy.
This is always a hard time of year for interest rates with so much uncertainty in the economy.If you are looking to buy or refinance, now is the time to speak with your lender and try to decide the best course of action. Hopefully rates will dive back down come the new year, but if the trend below is any indication, now may be the best time to act and lock in still a terrific low, low rate.
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