Denver Mortgage Rates

Freddie Mac recently released their most up to date survey on mortgage rates, and based on their findings, Denver mortgage rates will remain low for the next term. Freddie Mac has announced that rates are increasing slightly. However, even in light of those small increase, mortgage rates still remain near an all time low.

Freddie Mac is the country’s largest supplier of mortgages. They make it possible for one in four people who buy a home to afford that home. Freddie Mac supports communities like Denver and others around the country by giving mortgage capital to lenders. When Denver mortgage rates are low, as they currently are, Freddie Mac tends to loan even more money. Freddie Mac was established in 1970 by Congress, and over the last four decades or so, their role has been to make the mortgage industry liquid, stable. and affordable.

The Freddie Mac survey looked at the mortgage rates for four different types of popular mortgages. It looked at the rates for the 30 year fixed mortgage, the 15 year fixed rate mortgage, the 5 year adjustable rate mortgage, and the 1 year adjustable rate mortgage. Both of the adjustable rate mortgages that were surveyed are treasury indexed mortgages. Rates in each of these four categories averaged between 2.59 percent and 3.41 percent. These low numbers were collected based on mortgages around the nation, but Denver mortgage rates mirror these low national rates.

The 30 year fixed rate mortgage is arguably the most popular mortgage. The rates on this mortgage average 3.41 percent last week which was a slight increase from the 3.37 average that was seen by this type of loan the previous week. When compared to last year’s numbers, these rates are very low. Last year the 30 year fixed rate mortgage averaged at 4.10 percent.

The 15 year mortgage typically has the lowest interest rates, and borrowers in Denver will get to own their own home in only fifteen years if they apply for this type of loan.

Denver mortgage rates for this type of loan averaged at only 2.72 percent in October 2012

This is a slight increase over the previous week when these rates averaged at 2.66 percent, and it is significantly lower than rates from the previous year. Last year, the rates on the 15 year fixed rate mortgage were 3.38 percent.

The 5 year treasury indexed hybrid adjustable rate mortgage had an average rate last week of 2.75 percent. This was the same rate that this type of mortgage had on average the week before as well. However, it is much lower than last year when this type of mortgage had a 3.08 average. The one year treasury indexed adjustable rate mortgage, in contrast, had an average of 2.59 percent this week which was a slight decrease compared to its 2.60 rate the week earlier. This mortgage follows the trend of the other three mortgages, and its rates are lower than last year when they averaged at 2.90 percent.

Consumers wonder what these low Denver mortgage rates mean

According to the vice president and chief economist at Freddie Mac, Frank Nothaft, the low rates are good news. Nothaft says that these low Denver mortgage rates “should continue to support the housing market and mortgage refinance.” He continued to explain how these low rates had already had an impact on current house sales. In September, he explained, sales of existing homes was at 4.75 million, and this was the 2nd strongest pace since May of 2010. New home sales, in contrast, were the highest they had ever been since April 2010. These low rates combined with high demand have also had an impact on the FHA purchase-only house price index. In August, these factors took that index to its highest level since September 2010 when using seasonally adjusted numbers.

Nothaft went on to mention the recent monetary policy announcement from the Federal Reserve. The Federal Reserve announced on October 24th that they were acknowledging improvement in the housing sector of the economy. They said that the low mortgage rates were further signs of improvement, but they did note that improvement was happening from a depressed level.

Denver mortgage rates are extremely close to an all time low. However, their slight increase may indicate that they may continue to rise slightly into next year. This means that now is the right time to buy a home. Buyers who buy a home now will likely pay significantly less for their home than buyers who shop when the rates are higher.

With mortgage rates this low, you might be asking yourself, is it time to refinance your current mortgage or purchase a new home? When market interest rates dip below the interest rate you’re currently paying on your mortgage, refinancing can be a great way to save money. If you are in the market to purchase a new home there is no better time to leverage your purchasing power with all-time low Denver Mortgage Rates.

Denver Mortgage Rate Forecast 2013

Here is a Denver Mortgage Rate forecast looking into 2013, according to the Freddie Mac presentation on the 2013 economic outlook.

Low mortgage rates support gradual housing pick-up

• 30-year Fixed-Rate Mortgages stay below 4.0% through 2013
• Home buyer affordability supports home sales, up about 5-10% in 2013
• Consumer confidence, high unemployment are headwinds
• Refinance Boom continues but slows in 2013; overall originations down 15%

U.S. house price indexes up this spring 2013

• Oversupply of vacant homes has dropped, less downward price pressure
• U.S. indexes bottomed in 2012 (seasonally adjusted), up about 3% in 2013
• Local markets with excess supply will have prices bottom after 2012
• Rents are up, as are apartment building values