Everything going on in the world has had a huge impact on the stock market as well as home mortgage rates, especially in Colorado. Below is our take on what’s going on and how we can help.
The federal government recently dropped the federal interest rate to zero percent, however, it’s not what most people think. When the interest rate was decreased to zero, it affected variable rates, such as home equity lines of credit and credit cards.
What has more of an influence on mortgage rates is the stock market and the 10-year treasury. In a normal environment when stocks go down, people typically put their money into treasury notes or bonds. When this happens, mortgage rates usually plummet.
With what is going on in the world today, one would think that mortgage rates would be at a historic low, but that’s not the case. Mortgage rates are actually higher than they were a few weeks ago before the market crash. Because of the volatility of the market, lenders are in disarray and mortgage rates are all over the place. From what we have seen, mortgage experts anticipate mortgage rates to come down, which is great news for Colorado borrowers.
At Indigo Mortgage Colorado, we are here to help! Reach out to us for an evaluation. We can find the best interest rate for your situation. Don’t forget to take advantage of our Ticker List to lock in a lower mortgage interest rate as well.