Good News for Real Estate in Denver

Good news is being delivered nearly everyday this week!

The average U.S. rate on a 30-year fixed mortgage fell below 5 percent this week for the first time on record as a government program to buy mortgage-backed bonds lowered borrowing costs.

The fixed rate dropped to 4.96 percent from 5.01 percent a week earlier, Freddie Mac said in a report today. That’s the lowest in data that goes back to 1971, according to the McLean, Virginia-based mortgage buyer.

The Federal Reserve last week started buying $500 billion of mortgage-backed securities in the hopes that lenders will reduce the interest rates they charge. No matter how low rates go, it won’t help homeowners who have lost their jobs or seen the value of their property tumble, said Brian Bethune, chief U.S. financial economist at IHS Global Insight Inc. in Lexington, Massachusetts. by Kathleen M. Howley – Blooomberg News Service 1-15-2009

I’ve been talking about recovery in the Denver real estate market for sometime now. It’s nice to know outside sources like PMI Mortgage Insurance Company agree:

Home prices in the Denver-Aurora metropolitan area have less than a 1 percent chance of declining in value during the next two years, according to a national report released Wednesday.

The U.S. Market Risk Index released by PMI ranked Denver as the 10th least risky of the 50 largest metro areas in the country.

Yesterday the Rocky Mountain News reported:

At a time when the country is mired in the worst foreclosure crisis since the Great Depression, the Denver area is bucking the trend by seeing the first year- over-year decline in foreclosures in more than a dozen years. Read Story Here

As part of the article Carol Snyder the Public Trustee for Adams County attributed the decrease to a combination of evens.

- - - The success of the Foreclosure Hotline
    - Many homeowners are proactively calling mortgage companies, before they are far behind on payments.
    - The willingness (finally) of lending institutions to do workouts with homeowners

The Window of Opportunity is Open Now!

Buyers, please pay attention now. Interest rates are excellent. To purchase a home at 5% or even a little less means for every $100,000 you purchase your payment is going to be $540 plus Taxes , Insurance and MIP!

Of course interest rates are now tied to a buyers FICO score, so the better your credit the better your house payment.

It’s really hard not to get excited about the opportunity. If you or someone you know needs to buy a house, condo, townhome they should give me a call now.

I promise to walk you through the transaction like family.

You can start your home search here. Just browsing the available properties for sale will convince you there is a bargain for you, wherever you wish to live. OK I’ll qualify that, within your budget you can find a bargain! Really, I dare you to take a look!