If you’re getting ready to buy a home, the mortgage rate forecast will play an important role in that purchase.
For most people, buying a home is the single largest purchase you will make in your life. It can also help to be aware of interest rates if you already own a home and are considering refinancing or selling in the near future. So what is the mortgage rate forecast for Colorado Springs, Colorado?
The COVID-19 pandemic did a real number on the real estate industry and it’s ripple effects had a serious impact on interest rates. In the early months of the economic shut-down, most houses that were on the market were removed, and very few sellers listed during that time. The low supply and demand of houses caused interest rates to drop in an effort to encourage home buying. Throughout 2020, buyers started coming out of the woodwork yet sellers were still hesitant so supply remained low.
As of early 2021, interest rates on a 30-year mortgage in Colorado average about 2.75% with some lenders offering rates as low as 2.5% and as high as 3%. By comparison, rates hit an all-time high in 2018 at 4.94%, and they rarely fall below 3%. Many homeowners have been taking advantage of these historically low rates and refinancing their homes, while buyers have been buying homes at record speed.
Mortgage Rate Forecast
Although nobody would mind if the mortgage rates kept on dropping, it’s not very realistic. Based on predictions from the major housing authorities across the nation, the mortgage rate forecast for the coming months including slowly rising rates. It is predicted that the average interest rate for 2021 will hover right around 3%.
Keep in mind that these rates are for conventional 30-year mortgage loans. Interest rates, APR (annual percentage rates), mortgage fees, and other costs will vary by lender. Shop around and compare rates and fees with different lenders before making a decision on which lender you want to finance or refinance your home with.
The average home price in Colorado Springs is $350,000. Homes in this price range easily qualify for conventional mortgages with the interest rates discussed above. Homes that exceed $548,250 will require a specialty loan for financing, called a jumbo loan. FHA loans and VA loans might also be an option for you, depending on your situation. First-time home buyers in Colorado can also gain assistance through the Colorado Housing and Financing Authority. These loans may have different interest rates than those for conventional loans.
Zech Buys Houses is Here
Is the mortgage rate forecast encouraging you to buy a new home? With rates slowly on the rise, you might not have the time to let your house sit on the market for months before you’re able to purchase your next home. Zech Buys Houses can help! We buy homes in Colorado Springs, Colorado, in any condition for cash! We move fast and can close on any day you choose, freeing you up quickly to take advantage of the historically low interest rates. Contact us today for your cash offer!