New Denver Mortgage Opportunity

Let’s break everything down, from loan volumes to where growth is happening and how lenders can better serve diverse communities across the metro area.

What’s Next for Denver’s Mortgage Market?

Back in 2024, the Denver market was already feeling the squeeze of higher interest rates. Now, however, things are shifting again, just not in the way you might expect. Rather than a significant decline in buying activity, experts are predicting:

• A slight dip in loan volume overall

• An increase in average loan size

• Total purchase dollars rising modestly

Translation? There are fewer loans, but they are bigger, which puts a lot of power in the hands of well-prepared buyers and savvy lenders.

Where the Money’s Going

According to The Home Loan Arranger updated forecast, the mortgage Denver market is expected to outpace national averages over the next five years. The key metric here is the Mortgage Velocity Index (MVI), which measures how fast mortgage activity is growing compared to the U.S. as a whole.

Denver’s current MVI is 1.58 which means loan growth is nearly 60% faster than the national market. So while some markets may be cooling, Denver is heating up in terms of mortgage potential.

Census Tract-Level Opportunities

This data isn’t just a high-level guess. Forecasts now dig into specific census tracts, meaning lenders can zero in on hyper-localized opportunities. That helps with everything from targeting marketing to creating loan programs that really resonate.

Diverse Lending

This is where things become particularly intriguing and promising.

The Denver market is poised for a major leap in lending to diverse borrowers, with forecasts showing more than $1.3 billion in new mortgage dollars going to minority buyers by 2026. That’s more than a 30% increase over recent years.

Why does this matter?

• These communities have been historically underserved

• Lenders can use data to build new products that match unique borrower needs

• There’s a chance to close the homeownership gap

Some smart moves lenders can make right now:

• Create Special Purpose Credit Programs (SPCPs)

• Partner with local nonprofits or community centers

• Offer bilingual services or culturally relevant resources

• Educate first-time buyers about new low down payment options

These aren’t just feel-good strategies; they’re smart business practices.

Refinancing Is Back

With rates expected to dip slightly and many homeowners locked into loans with room for better terms, refis are once again gaining traction. Refinancing hotspots? They’re not spread evenly across Denver. Instead, they cluster in certain census tracts—typically where values have increased fastest or where more buyers entered the market in recent years at higher rates. If you already own a home in Denver and haven’t refinanced since rates climbed, 2025 might offer a sweet spot to lower your payment, shorten your term, or finally knock out that PMI.

What This Means for Buyers in 2025

• Competition may cool slightly, but not enough to wait. Having your financing ready still gives you the upper hand.

• Take advantage of loan programs designed for lower down payments, especially if you’re a first-time or diverse buyer. FHA, VA, and local assistance programs are widely available.

• Forecasts of mortgage rates by census tract show that some areas of Denver may offer better deals or more room to negotiate. Don’t limit your search too narrowly.

• With larger loan amounts and short-term rate relief, adjustable-rate mortgages could help you stretch your budget further, especially if you plan to move or refinance within a few years.

Conclusion

The Denver mortgage market isn’t slowing down; it’s evolving. The direction is clear: upward and forward. So, if you’re considering mortgage opportunities in Denver, now is the time to prepare and plan your next steps.