For the past two years the pandemic has kept mortgage rates extremely low across the entire country, with rates dropping below 3% at certain times. These historic low rates made it more manageable for buyers to borrow, even though home prices were on the rise. But it appears change is coming.

As of the week of February 11, rates on 30-year, fixed-rate mortgage loans topped 4% for the first time since 2019. That’s a jump from the week prior when rates were around 3.83%. It was also an unwelcome surprise for borrowers who were looking to purchase homes at record-low rates. Over time, the rate shift could also impact other areas of the market, from refinancing loans to the rate of mortgage applications.

Unfortunately, rising interest rates weren’t the only significant real estate market shift that occurred this week. Buyers are not only facing rising interest rates, but home prices continue to soar, too. Right now, buyers are facing one of the priciest housing markets in history, and in turn, the average purchase loan size has grown. The average purchase loan size for conventional loans set a new record of $453,000.

With inventory in Denver so low, buyers need to be ready to move quickly as houses don’t stay on the market long. In fact, 79.7% of homes here go off the market two weeks after they go on. That’s second only to Seattle who comes in at 80.9%. Coming in third is Coeur d’Alene, Idaho where 75.9% of homes are off the market in two weeks.

We recommend getting pre-qualified for a mortgage before even looking as it shows sellers you’re serious and will allow you to get moving on a property without waiting for the financial paperwork to go through. Want more tips on how to navigate our competitive real estate market? Give Metrowest a shout – we’d be happy to discuss your options!