Mortgage Rate Forecast for the rest of 2020

This week on “Mondays with Matthew”: Now that things have settled down somewhat following the initial impact of COVID-19, Matthew dives into the topic of mortgage rates. Will they go below 3%? Matthew discusses this and the factors that have formed his updated 2020 and 2021 mortgage rate forecast. 

 

Posted on June 3, 2020 at 5:08 am
Brandon Bidwell | Category: Market Data | Tagged , , , , , , , ,

Interest Rates near All Time Low!!!

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

  • The rate today is 3.45%
  • The lowest-ever in November, 2012 was 3.31%
  • A year ago they were 4.35%

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, we 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.

If you would like recommendations for good, local lenders to compare just let me know and I’ll put you in touch with the best I know!

Posted on February 29, 2020 at 3:03 am
Brandon Bidwell | Category: Buyers, Mortgage | Tagged , , , , , , , , , ,

The 12 Facts of Real Estate

  • 1 is the ranking Colorado owns for long-term home price appreciation versus all other states
  • 2.6% unemployment rate in Colorado right now
  • 3.73% mortgage rate for a 30-year mortgage which is about half of the long term average
  • 4.7% apartment vacancy rate in Metro Denver, the lowest since 2015
  • 5.5% is the long-term average for yearly home price appreciation along the Front Range
  • 6,000,000 live in Colorado
  • 7,000 residential properties are for sale in Metro Denver right now and the average for this time of year is 14,700
  • 80,000 is the number of people that is added to our state’s population each year
  • 9 homes are for sale in Larimer and Weld County priced over $2,500,000
  • -10% is the decrease in new home construction in Larimer County compared to last year while Weld County grew by 17%
  • 11 times in the last 40 years home prices have gone up at least 8% along the Front Range
  • $1,202,488 is the average price for a single-family home in the City of Boulder

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Posted on January 23, 2020 at 4:12 am
Brandon Bidwell | Category: Market Data | Tagged , , , , , , , , , , , ,

Matthew Gardner’s 2020 Mortgage Rate Forecast

Each year Windermere’s Chief Economist, Matthew Gardner, forecasts into the next. Here’s what he expects for Mortgage Rates in 2020.

 

Posted on December 18, 2019 at 3:18 am
Brandon Bidwell | Category: Buyers, Market Data | Tagged , , , , , , , ,

Interest Rate Bounce

Rates hit near-historic lows this week and are now at 3.49% for a 30-year mortgage.

There have only been two other times in history when rates have been this low- April 2013 and October 2016.

It’s interesting to see what happened soon after bottoming out these last two times.

In April of 2013 rates hit 3.41%. By August 2013 they had jumped to 4.40%.

Rates bottomed again in October 2016 at 3.42%. Just two months later in December 2016 they were 4.32%.

Each time the increase was nearly 1% within just a few months.

So, if history proves itself as a guide, we can’t expect these rates to last for long.

Posted on September 14, 2019 at 10:11 pm
Brandon Bidwell | Category: Buyers, Market Data, Mortgage | Tagged , , , , , ,