Colorado Springs REALTORÂ® Nicole Lee with the influential Ashford Realty Group in Colorado Springs says that would-be home buyers are getting a gift of historically low interest rates this Christmas season.
Online PR News – 20-December-2010 – – Colorado Springs, CO - Colorado Springs REALTORÂ® Nicole Lee with the influential Ashford Realty Group in Colorado Springs says that would-be home buyers are getting a gift of historically low interest rates this Christmas season.
Lee says that although the Treasury Department attempts to keep the economy moving with easy lending, it has created an historic opportunity for home buyers to get low payments on already low-priced Colorado Springs real estate. However, time appears to be running out as the 30 year treasury bond yield, which largely determines prevailing mortgage rates, has been rising aggressively in recent weeks.
"Despite efforts at Quantitative Easing by the Federal Reserve, we are definitely seeing the beginning of a weakening bond market, which translates to increased home loan interest rates for home buyers. That means buyers who have been on the fence should act quickly to lock in today's rates and close escrow on the home of their choice."
She says that Colorado Springs mortgage rates play a large role in determining how much home a buyer can qualify for.
"The rule of thumb is that for every percent in interest rate, you can qualify for 10% less house. Anyone who has been watching inventory of Colorado Springs homes for sale can tell you that a 10% price difference gets a significantly different house."
In addition to buying power, Lee says that mortgage rates can dramatically affect supply and demand of homes on the market. She says that when when rates go down, buyers spring into action in order to take advantage of the low rates.
"When rates go up, buyers tend to act quickly to purchase the home they've been wanting before they get priced out of the market by interest rates."
With the historically low real estate prices due to the number of bank owned homes and Colorado Springs foreclosures on the market, along with very low interest rates, Lee is encouraging buyers who are considering buying a home to do so immediately.
"We just don't know how long this combination of low prices and interest rates will last, but Colorado Springs homes are an exception value because of it, in our opinion."
For more information, please contact:
Ashford Realty Group
4760 Flintridge Dr, Ste 100
Colorado Springs, CO 80918
Phone: (719) 314-6057
Fax: (888) 631-0062