top of page
Search

What Lower Mortgage Rates Mean for Your Purchasing Power in Colorado


Percentage symbol with downward arrow against a sunrise backdrop, symbolizing a decrease in mortgage rates

If you want to buy a home in Colorado, it's important to know how mortgage rates impact what you can afford and how much you’ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under 7%, according to Freddie Mac (see graph below):


Mortgage Rates Fall Below Seven Percent: January 2023 - January 2024

This recent trend is great news for buyers. As a recent article from Bankrate says:


“The rate cool-off somewhat eases the housing affordability squeeze.”

And according to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the Mortgage Bankers Association (MBA):


“MBA expects that affordability conditions will continue to improve as mortgage rates decline . . .”

Here’s a bit more context on how this could help with your plans to buy a home in Colorado.


How Mortgage Rates Affect Your Search for a Home


Understanding the connection between mortgage rates and your monthly home payment is crucial for your plans to become a homeowner. The chart below illustrates how your ability to afford a home changes when mortgage rates shift. Imagine your budget allows for a monthly payment between $2,400 and $2,500. The green part in the chart shows payments in that range or lower (see chart below):


Buyer's Purchasing Power: Monthly Mortgage Payment (Principal and Interest)

As you can see, even small changes in rates can affect your budget and the loan amount you can afford.


Get Help from Reliable Experts To Understand Your Budget and Plan Ahead


When you're looking to buy a home, it's important to get guidance from a local real estate agent and a trusted lender. They can help you explore different mortgage options, understand what makes mortgage rates go up or down, and how those changes impact you.


By looking at the numbers and the latest data together, then adjusting your strategy based on today's rates, you'll be better prepared and ready to buy a home.


Bottom Line


If you’re looking to buy a home, you should know the recent downward trend in mortgage rates is good news for your move in Colorado. Let’s connect and plan your next steps. Are you ready to explore the possibilities that these lower mortgage rates open up for you?

32 views0 comments

Comments

*No down payment loans: Closing costs and fees may still apply. First lien interest rates may be higher when using a DPA second. Opinions expressed are solely my own and do not express the views of my employer. Pre-approvals are given to clients who have met qualifying approval criteria, for specific loan requirements, and have been pre-approved by a PRMI underwriter. VA home loan purchases, have options for 0% down payment, No private mortgage Insurance requirements, competitive interest rates, with specific qualification requirements. VA Interest rate reduction loans (IRRRL) are only for Veterans who currently have a VA loan, current loan rate restrictions apply, and limits to recoupment of costs and fees apply. VA Cash-out Refinances are available for Veterans with or without current VA loans. Policies and guidelines may vary and are subject to the individual borrower(s) qualification. Program and Lender overlays apply.

bottom of page