The real estate news coming out of Denver and Boulder is too good to ignore: mortgage interest rates are falling. For buyers who’ve been watching homes for sale in Denver CO or tracking the Boulder real estate market, this could be the moment you’ve been waiting for.
Why Lower Rates Should Get You Off the Fence in Denver & Boulder
If you’ve paused because of high mortgage rates, here’s what the drop means in the Denver/Boulder context:
-
More affordable monthly payments: Lower rates make a big difference, especially in a high-cost housing market. For example, properties in Boulder often have median values around $940,000+, so shaving even half a percent off the rate can save you thousands annually.
-
Greater purchasing power: With lower interest, your budget stretches further. You could afford a nicer home, better neighborhood, or more square footage.
-
Better negotiation leverage: The Denver housing market has been cooling somewhat, with median Denver home prices still raising year over year but much more slowly than before and longer days on market. When rates fall, motivated sellers might be more willing to offer concessions.
-
Ideal time for first-time buyers: If you are searching for Denver homes for sale, getting pre-approved while interest rates are lower can put your offer ahead of those who are waiting. Many first-time buyers find the difference in rate makes qualifying easier.
What Homeowners with a Recent 2-1 Buy-Down Should Do
If you bought recently using a temporary 2-1 buy-down (where your mortgage rate was reduced for the first two years), now’s the time to investigate a refinance (I am a Realtor, not a lender but would like to give some broad direction. Please talk it over with your trusted lender.):
-
A refinance could lock you into a lower fixed rate mortgage that is closer to—or lower than—what your temporary buy-down started with.
-
Avoid the jump in payments once the buy-down period ends. That spike can be a shock—but the current dip in rates may allow you to smooth that transition.
-
For Boulder or Denver homes, even small rate differences multiply, especially given higher property values and associated costs (taxes, insurance, etc.).
What You Should Do Now
-
Check today’s Denver mortgage rates — see what lenders are offering for 30-year fixed vs adjustable-rate mortgages.
-
If you’re home shopping, get pre-approved so you know your budget and look strong when making an offer on a Denver or Boulder home.
-
If you’re in a 2-1 buy-down, reach out to lenders or a mortgage advisor to compare what a refinance would cost vs your expected payments after the buy-down ends.
-
Give me a call so we can review more direct advice about how the neighborhood you'd like to live in is behaving in this current market. Work with a local real estate agent who understands Denver neighborhoods (e.g. Cherry Creek, Park Hill, Berkeley, etc.) or Boulder districts (Mapleton Hill, Old North Boulder, etc.) and can help you maximize your opportunity.
Lower interest rates + more inventory = a window of opportunity. Whether you’re looking to buy a home in Denver, invest in Boulder real estate, or you’re one of those homeowners who used a 2-1 buy down, now is the time to act.
If you want help modeling your refinance or comparing homes in Denver or Boulder, I’d be happy to run the numbers with you. Let’s make this move count. Lets chat through your next move!
