Historically low interest rates coupled with stalled appreciation due to Covid-19 has created a unique window of opportunity for buyers in the Denver real estate market. This is especially welcome news for first time home-buyers.
Interest Rates and Affordability
How much of an impact do interest rates have on your home shopping budget? As it turns out, a big one! Mortgage rates are the lowest they've been since 1971, translating to a ten percent increase in affordability from this time last year! As demonstrated in the graph below, falling interest rates significantly increase the amount of home you can afford to purchase for your approved monthly payment amount.
Two Ways to Take Advantage of Low Rates
This creates awin-win conundrum with two desireable options to take advantage of.You can either choose to spend ten percent more on your home purchase while maintaining the same monthly payment, or you can keep searching in the same price point but pay ten percent less per month than you would have for the same home at the same price last year!
Getting the Best Rate on Your Home Mortgage
With excellent credit, some buyers are even able to buy down already low rates using discount points to get below 3% on their 30 year mortgages! Having a proactive local lender on your home buying team is essential and getting the best rate is multi-faceted, as Nicole Rueth from Fairway Independent Mortgage explains in this informative video.
Don't Miss Your Chance
The window is open for Denver buyers, but how long will it remain open? By this time next year, both appreciation and interest rates could be trending up and you may have to restrict your home search to a lower price bracket. Don't miss your chance to capitalize on low interest rates to get into your first home, next home, or investment home while rates are still low.
Recommended Reading
Market Conditions Today v 2008
Effects of Covid-19 on the Denver Market
Socials