· Mortgage Rates1 – A mixed bag of economic data highlighted by upward revisions to Q4 2023 GDP has seen pundits shift their commentary to a ‘no landing’ scenario (vs. a ‘soft landing’). In essence, suggesting that the Fed may be justified keeping the Fed Funds rate stable for a more extended period of time. Consequently, we saw only a minor movement in mortgage rates, with our benchmark rate holding steady at 6.750% (6.759% APR).
· Weekly Market Data2 – Pretty much a replay of last week – slightly more than 1,000 new listings coming onto the market and active inventory holding in the mid-5,000 range. With homes going under contract (1,092) basically matching the new listings hitting the market (1,084), the change in inventory is a consequence of closing timelines. Median Days on Market rose to 11 days, marking the first increase we have seen in a while. (Source REColorado, all DMAR counties, this past week – Thursday to Wednesday).
· Columbine Team Insight – This marks the third week in a row that accepted offers were under 50% at 43% accepted. Of those accepted we had a mixed bag of over list, at list and below list. Those homes over $1M faced minimum competition and those in the $600k – $800k had the highest level of competition ending up 2% over list price. With the Easter Holiday, we are anticipating a ‘light’ weekend, so perhaps a little less competition if you are lucky.
· Market Trends – Did you know that you can buy a 2-to-4-unit property with only 5% down? If you move into one of the units as your primary residence you can put as little as 5% down and use rental income on the remaining units to help qualify for the mortgage. In addition, the interest rate is the same as purchasing a primary residence, instead of the higher interest rate associate with an investment purchase. If you have been wanting to jump into investing this may be the easiest way to start your portfolio and gain experience with property management.
NOTES:
(1) The mortgage loan scenario presented assumes the purchase of a primary residence, excellent credit, an 80% loan-to-value (LTV), a loan amount of $480,000, a 30-year fixed interest rate of 6.750%, and a P&I payment of $3,113. The Annual Percentage Rate (APR) is 6.759%, which reflects a lender credit of 0.067% ($322). Monthly principal and interest payments, which will continue for the stated term until paid in full, do not include mortgage insurance, property taxes or homeowners’ insurance premiums and actual monthly payments may be higher. Interest rates are current as of 03/28/2024 and are subject to change at any time without notice. All loans are subject to credit approval. Other terms and conditions may apply. Not all loans or products are available in all states. Regulated by the Colorado Department of Regulatory Agencies, Division of Real Estate.
(2) Source: REColorado®, Inc for the period 03/21/2024 to 03/27/2024. Data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park counties. This representation is based in whole or in part on content supplied by REColorado®, Inc. and REColorado®, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market.
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