Mortgage Rates Favor Buyers And Sellers Both
This may be an excellent time to be a buyer, even in the Boulder area. While prices remain stable, especially compared to what we’ve been hearing about many other parts of the US, the number of homes sold is lower than last year.
Even so, it’s the rates for loans that is a great piece of ongoing news.
You should be happy to know, if you’re either a buyer or a seller right now, that mortgage rates are down for the fifth straight week as of friday. The average rate on the 30-year fixed-rate mortgage is down about 0.75 percentage points since it began falling about a month ago.
The Wall Street Journal credits the rate drops to the takeover of Fannie Mae and Freddie Mac.
Even though rates are low, and prices are stable, don’t get too excited when you get that great offer on the home you’re selling. The pool of qualified buyers is small and getting smaller. Thanks, in part, to the continued tightness of most lenders.
The common thread lately in my office and with agents in other offices I’ve talked to, is that contracts are falling through frequently due to buyers having trouble securing financing.
All this means to you as a seller is, make sure you get some decent supporting documentation from the buyer and buyer’s lender before you let your Realtor change the status of your listing. If that jargon doesn’t make sense, I apologize. Ask your Realtor to clarify what I’m talking about. Any real estate professional should be giving you the same advice.
In many instances, the buyer’s lender will be willing to talk to your agent to discuss the strength of the buyer’s qualifications. While you won’t get personal data on the buyer, it’s reasonable in these times of tight credit, to get some assurance that the loan officer has actually done his due diligence before writing up that pre-approval letter.
With the steady lowering of interest rates, there’s a surge of nearly 60% in mortgage applications in the last 40 days. Last week continued this trend bringing the 30 year fixed rate to 5.78% at the end of last week, and the 15 year rate ending last week at 5.35%.
Thank you for reading my work. If you are thinking about moving, or know someone that could use my help, please contact me. I would consider it a privilege to assist you, or someone you know with real estate.
-Zachary Epps, Full-Time Professional Realtor.
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