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Mortgage rates tumbled in March, experiencing the biggest one-week fall in a decade. Your mortgage rate affects how much your monthly mortgage payment is and the total amount of interest you pay over the life of your loan. Lower rates can add up to big savings over the life of a loan.Mortgage rates tumbled in March, experiencing the biggest one-week fall in a decade. Your mortgage rate affects how much your monthly mortgage payment is and the total amount of interest you pay over the life of your loan. Lower rates can add up to big savings over the life of a loan.

We’re seeing a strong start to the spring buying season. Many clients are in tune with the market and interest rates while others are unsure of what they can expect to pay or whether they’ll be able to get a good rate. The good news for buyers is that mortgage interest rates have fallen a full percentage point since the end of 2018.

A year ago, pundits predicted rising mortgage rates in 2018 and throughout 2019. Many expected to see rates of 5.25% or higher by this time. Instead, rates have fallen. A recent Freddie Mac survey showed that the average for a 30-year fixed-rate mortgage had fallen from 4.28% to 4.06%. Rates haven’t dropped this much in one week since 2008.

As I write this, the national average for a 30-year-fixed rate is 4.03% and the average for a 15-year fixed mortgage is 3.49 percent. 30 years ago, in 1989, the average rate for a 30-year fixed mortgage was 11.13%. In late 2012, rates were at a record low of 3.5%.

Although mortgage interest rates aren’t set by the Fed, they’re influenced by what the agency does. Most recently, the Fed has declined to raise interest rates and has signaled that hikes are not in store for this year.

Your mortgage interest rate will depend on a number of factors, including your credit score, your down payment, and the length of the loan. Generally, the better your credit score, the higher the down payment and the shorter the term, the better your rate will be. The type of loan is also important. If you’re a veteran and can get a VA loan, for example, your rate will be lower.

On April 3, the Mortgage Bankers Association reported that dropping rates led to a 6 percent increase in purchase mortgage applications and a 12 percent increase in refinance applications. The size of the average purchase loan declined, which indicates more first-time buyers are entering the market. It’s still a great time to buy a home.

We expect to see more buyers coming into the market this year, and many will do so with homes to sell. Although the Metro Denver market is currently a sellers market – meaning there are more buyers than homes – it feels much more balanced than it has been.


Ready to get moving? Have questions about selling or buying a home? Call David at 720-408-7409.