Hot Summer Housing Market
Summer is waning. Children are heading back to school – I know because all my Facebook friends are posting pictures of school lunches, yellow buses and Moms sad-n-happy with sending a little one off to school for the first time. Hm, seems like the perfect moment to share my Summer Boulder Mortgage Update on what’s going on with house mortgages. There is still plenty of opportunity out there for savvy home buyers to find amazing deals. The Summer Boulder market has been strong and generally consistent.
Ken Hotard with the Boulder Area Realtor Association points out, “all Boulder-area communities saw increases in year-over-year average and median sales prices.” This while inventory remains low and stagnant and sales numbers have dipped a tad.
Is Now A Good Time To Get A Home Mortgage?
Overall, where are interest rates? The good summer Boulder mortgage update news is simple: rates are low. A combination of factors is driving this: National policy combined with uncertainty from international conflicts in the Middle East and Russia/Ukraine.
Freddie Mac’s chief economist sums it up: ‘The economic growth and labor market gains we saw in the second quarter of this year are projected to continue, strengthening household formations and the housing sector’.
Alisa York, mortgage specialist, points out,disappointing domestic retail sales, European debt worries and inflation is helping to keep home mortgage loan rates at the best levels of the year. Amanda Sessa adds, the US labor market is picking up steam. Through the first seven months of 2014, nearly a quarter million jobs added to the economy.
Low Credit No Problem
And mortgages are becoming more accessible. This is excellent summer Boulder mortgage update news. Alicia Gordon (no relation) with Summit Bank tells me her firm is now able to get FHA mortgages done for clients with credit scores as low as 580. Here are the guidelines: Borrower must have a DU approve eligible (no manual underwriting) mortgage, with at least 3 open and active credit lines showing activity for the past year. Buyer also has to have a one year plus housing rating. The biggest catch: no gifts or closing assistance allowed for borrowers.
Primer On How Mortgage Rates Move
Government (FHA, VA) and bank loans (Conventional) are valued based upon MBS. MBS – mortgage backed securities – are traded in real time. This can cause pricing of mortgages to fluctuate during the day. Economic and political events have impacts on the financial markets. For instance, bad news last Friday when it was feared Ukraine had destroyed a Russian military column sent markets panicking and home mortgage rates lower.
Bad economic or political news can be good for the rate you pay on your mortgage. Of course, we might all agree, a happier, friendly world with less drama is good for people even if it means we pay a little more for home mortgages.
Local Good News
Ken Hotard (BARA) goes on to point out recently that Boulder is in the midst of a 2 year strengthening of our economy. He says short of an international incident or devastating local disaster, our economy is on track for continued growth.
Summer Boulder Mortgage Update Resources
This blog was made possible thanks to helpful newsletters from Brian Crowder, John Arnold, Alicia Gordon, Alisa York, Amanda Sessa and the Boulder Area Realtor Association. Resource page. Below, one more amazing gate from showing Boulder homes for sale this week!!