Corona Rates

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.

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Posted on February 28, 2020 at 4:13 pm
Windermere Windsor | Category: Fun Facts, Mortgage | Tagged , , , , , , ,

Good Loan News

Here are two recently-announced pieces of really good news for home buyers.

• The Colorado Housing and Finance Authority recently raised the income limit for their down payment assistance program to $115,600.

Now more people can get help with a down payment.

• Fannie Mae and Freddie Mac raised their conforming loan limits so that more people can use a conforming loan and not be forced to use a ‘jumbo’ loan.

Contact us if you would like to hear how these pieces of news could help you.

Posted on December 7, 2018 at 8:31 pm
Windermere Windsor | Category: Blog, First Time Home Buyer, For Buyers, Fun Facts | Tagged , , , , , , , ,