Mortgage Rates are Falling

Mortgage rates declined last week, as inflation became less of a threat to investors. According to Freddie Mac’s charts, the rates for a 30-year fixed mortgage averaged 6.24%, which is a decrease from the average of 6.33% the week before. In November of 2005, the average 30-year fixed mortgage was at 6.37%. While rates for 30-year fixed loans have slightly decreased, the rates for five year ARMs averaged 6.08 percent last week, which is an increase from 6.05 percent the previous week and an increase from 5.81% in November of 2005.

The stagnant Denver real estate market is desperately in need of some stimulation and falling interest rates may be the key ingredient. We will continue to monitor interest rates over the coming months and hope that falling rates will heat up the Denver housing market.