Mortgage rates in Colorado at annual low and foreclosure filings down
The Primary Mortgage Market Survey by Freddie Mac on May 5, 2011 reported that a 30-year fixed rate mortgage in the West has fell to 4.63% and the 15-year rate to 3.84%. When compared to the national average rate that is at 4.71%, this rate is the lowest in the nation since January.
Frank Nothaft, vice president and chief economists at Freddie Mac, stated in a news release that weaker economic data reports reduced Treasury bond yields and allowed mortgage rates to accumulate heaps lower for the third consecutive week. However, he felt happy about the reports on the housing market, particularly due to the rise of pending home sales which indicate the signs of housing recovery. On the other hand, the Federal Reserve announced that after two tightening quarter, credits standards among commercial banks for prime mortgage stayed the same.
The other surprising news was released by the Colorado Division of Housing on May 5th with regard to the foreclosure in Colorado. It was reported that the foreclosure filings in the first quarter of 2011 became lower at 27% than the first quarter of 2010. According to Ryan McMaken, this fall has been the lowest level since the third quarter of 2008 and has fallen nearly 35% below the third quarter of 2009 when filings of foreclosure were at more than 12.000.
Finally, a loosening of strict credit standards and historically low interest rates will make buyers come into the housing market and strengthen the economy in Colorado. Since renting requires the borrowers to pay higher monthly payments due to high demand and low vacancy rates, it is predicted that many borrowers will opt to buy rather than rent. However, time will tell.
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