Boulder Realtor Insight
Buying a Boulder Colorado home has two challenges these days. Getting a Boulder home loan and finding a house for sale are the two primary challenges for home buyers. First, inventory is at an all time low. There are a lot of good visual graphs out there that discuss this trend. I first published this one several weeks ago in another post (see below). Basically: there are few houses for sale.
The second challenge for buyers in today’s market is the inability to qualify for the mortgage financing the Boulder home buyer prefers or just flat out requires. Boulder home loans are tougher to get these days and with interest rates going up, home buyers are discovering they can afford less house or will have a higher monthly payment.
What Mortgage Bankers Say Regarding Boulder Home Loans
Smart consumers understand the best interest rates are long behind us. The bond market reacts very quickly to negative news and quite slowly to positive information. In practice, this means Boulder home loans jumped up on the minimum interest rate following the announcement by the Fed that the MBS buy-back program will be phased out later this year or early next. When the Fed added it would not rush this phase, rates eased a little bit, but not noticeably.
Mortgage lenders are closely watching a slew of factors – what is happening with world and US stock markets, where are bond rates, what impact do various report releases have on the volatility of the bond market and in turn interest rates. See graph below.
Bottom Line Advice on Boulder Home Loans
The nature of our current market suggests close consultation with a trusted mortgage expert to lock in for the best rate. It is unlikely current buyers will see the super low interest rates that consumers were getting earlier this year. Boulder home loans today will be at a higher base rate – so lock in to get the best current rate. And, home buyers should know, this uptick in rates is actually increasing purchasing activity, with many buyers acting before rates climb even further. Contact a mortgage professional now.