Sellers Are Helping Buyers to Buy Down High Interest Rate Mortgages

With interest rates staying between 6 and 7 percent, it has become a common practice for buyers to demand and sellers to grant a concession by which the seller pays a fee to the buyer’s lender to get a lower interest rate for the first year or two, after which the buyer can hopefully refinance at a lower rate.

To see how pervasive this trend has become, I compared the statistics on Denver metro area closings over the past 90 days versus before interest rates began rising last year.

During the 90 days prior to this Monday, there were 4,512 closings of residential listings on in which it was reported that the seller had provided a concession related to buyer’s closing costs. During the first 90 days of 2022, that number was only 2,675.

Author: Golden Real Estate, Inc.

Golden Real Estate is a prominent member of the Denver/Jefferson County real estate scene. Based in Golden, we service both Denver and Jeffco, representing both buyers and sellers. We're well known for Broker Jim Smith's weekly "Real Estate Today" column published in the Denver and Jeffco editions of the Denver Post's YourHub section each Thursday. The column also appears in several weekly newspapers and is archived at We have nine agents, all of whom are Realtors and EcoBrokers. Our office is Net Zero Energy since December 2017, and several of us drive electrics cars. Known for our sustainable practices, we accept polystyrene (aka "Styrofoam") for recycling, keeping 200 cubic yards per year out of area landfills.

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