James Real Estate RE Fin Terms Dnvr 2000 3rd Qtr Page 3
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Mortgage Interest Rates
Historic home mortgage interest rates in Denver generally ranged from 9.5% to 10% from 1989
through the fall of 1991 then declined over the next two years. After rising by more than 2% through
1994, rates declined again through early 1996. A moderate rise in rates through mid-1996 gave way to a
decline in the fourth quarter of 1996 and mortgage rates averaged slightly above 8% for the second
quarter of 1997. Government bonds and corresponding home mortgage rates began another trend
downward to near historic lows in the first two quarters of 1998 due to record levels of low inflation and
funds flowing into U.S. Treasuries due to economic concerns in other parts of the work. As shown on
the following page, long-term mortgage rates generally mirror long-term U.S. Government bond yields.
U.S. Quarterly Average Interest Rate Comparisons
1993 through Second Quarter 2000
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
9.0%
9.5%
1/93 2/93 3/93 4/93 1/94 2/94 3/94 4/94 1/95 2/95 3/95 4/95 1/96 2/96 3/96 4/96 1/97 2/97 3/97 4/97 1/98 2/98 3/98 4/98 1/99 2/99 3/99 4/99 1/00 2/00
Quarter/Year
Yield or Interest R
a
te
30-Year Fixed Home Mortgage Interest Rate
30-Year U.S. Government Bond Yield
Prime Bank Interest Rate
Prime 7-Year Commercial Mortgage Rate
