With everything going on overseas and gas getting so expensive, what is going tohappen tomortgage rates and Real Estate in Denver? It is a very fair question and one I was asked yet again today from a buyer I am working with. The simple answer is that it is keeping mortgage rates low for the time being, most rates are under 5% right now, but once things settle down in the Middle East, expect to see rates back in the 5% range again. And with gas prices on a steep rise, I have heard people already talk once again about wanting to move closer to work.The last time we saw a major increase in gas prices, we began to see a migration toward urban neighborhoods. People want to be closer to work to avoid having to drive so much, and also want to be walk able to grocery stores and restaurants. If gas prices stay above $3 a gallon, I fully expect this trend to continue and the demand for close in housing to stay strong. Keep it in mind when looking at potential resale value of your next home.To better understand what is going on with mortgage rates and the bond market, I decided to turn to the experts. According to Christine Jensen with Cherry Creek Mortgage, the global unrest in the Middle East continues to impact the markets. The protests that started in Tunisia and Egypt have now spread to Bahrain, Yemen and Libya. And anti-government protesting is even being reported in Iran. Libya has been of particular concern to the markets, since it is the largest holder of oil reserves in Africa. The thought of oil fields at risk has pushed oil higher - climbing over the mark of $100 per barrel. Remember, high oil prices aren't good for anything; they're tough on the economic recovery, and they're inflationary.
In addition to higher oil prices, the unrest is creating fear and doubt in Traders' minds about what might happen. And when Traders are uncertain, they tend to move money into the relative safety of Bonds, which offer lower returns but also lower risks. This flood of money into Bonds - including Mortgage Bonds - helps prices and home loan rates improve.
The bottom line is that global unrest has been a driving force behind improvement in the Bond market... and that it may continue to do so in the coming weeks. But at the same time, it's important to remember that those gains are fleeting and have even been limited by inflation fears - so the positive picture for Mortgage Bonds and home loan rates won't last long. 
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