The 1970′s Called… Their Mortgage Rates are Here!

If you missed out on the $8,000 home tax credit, don’t worry, here is another great opportunity!

According to Denver Real Estate Agents and Finance Guru’s, mortgage rates have hit a record low.  According to the mortgage company,  Freddie Mac,  “The average rate for 30-year fixed- rate loans dropped to 4.69 percent, from 4.75 percent last week.” Rates have not been this low since 1971!

Mortgage rates have dropped because of several reasons. One being the “turmoil in the stock market and the European debt crisis” (read more) and the second Margaret Jackson of the Denver Post explains that “Mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys” (read more).

Experts are saying now is the time to buy because when the economy starts to show “sustained improvement” you can count on rates going up!

Condominium Associations Facing Challenges

Loura K. Sanchez from HOA Legi-Slate reports that as the rush to refinance grows, it is posing challenges for condominium associations. “Interest rates fell below the psychological 5% last week, which led to a rush of homeowners looking to refinance.  While this may increase liquidity for some homeowners it may result in an unforeseen challenge for condominium associations if the refinanced loan is backed by FHA.  As of February 1, 2010 condominium associations must be approved as a whole and “spot approvals” are no longer allowed.  If your association is not approved the refinancing rush may result in confusion and high pressure on your management team and boards to get approval quickly.”  (read more)