Mortgage Rates Dip Amidst Market Uncertainty
Recent declines in the stock market have led to a surprising benefit for homebuyers: lower mortgage rates. The 30-year fixed-rate mortgage has dropped to a 15-month low of 6.47% due to falling bond yields.
While this is good news for potential homeowners, it's essential to temper expectations. Mortgage rates are influenced by various factors, including Treasury yields and lender margins. While rates have decreased, they remain historically high.
To put things into perspective, even with the recent drop, roughly 96% of homeowners would not benefit from refinancing. Additionally, the spread between mortgage rates and Treasury yields is still relatively high.
So, what does this mean for homebuyers?
While lower mortgage rates are certainly a positive development, it's essential to consider other factors like home prices and inventory levels. With a balanced market emerging, buyers may have more negotiating power. However, to secure the best deal, it's crucial to work with a knowledgeable real estate agent and lender that can guide you through the process.
The best bet for would-be homebuyers might be to leverage seller concessions for rate buy-downs. Ultimately, the housing market is dynamic and influenced by multiple factors.
Denver | July 2024 Trends
Market Trends, July 2024
Denver's Housing Market Shifts Gears
Denver's once-hot housing market is showing signs of cooling. After a prolonged seller's market, buyers are now finding more options available to them.
According to the Denver Metro Association of Realtors (DMAR), new listings and sales declined in July. While this might seem alarming, it indicates a market shifting towards a more balanced state. Inventory has increased, giving buyers more negotiating power than in previous months.
Metro Denver housing market is seeing a backlog of luxury homes build up. However, it's essential to note that Denver's market remains competitive. While prices have stabilized compared to the rapid increases of the past, homes are still selling relatively quickly.
As we move through the year, it will be interesting to see how the market evolves. Will it continue to cool, or will we experience a resurgence in buyer demand?
Key takeaways:
Increased inventory
Stabilizing home prices
Shift towards a more balanced market
Buyer's market conditions emerging
With rates reaching 6.5%, down from 7%, it is likely that the declining trend will allow more buyers to enter the marketplace.