· Mortgage Rates1 – A steady stream of ‘not so good’ economic news, a big ‘nothing burger’ coming out of Fed Chairman Powell’s semi-annual congressional testimony, a few words from the European Central Bank citing weaker inflation, and some ‘middle of the road’ employment data gave the markets what they needed to string together a few positive days in a row while reducing pricing volatility. With a steady MBS market, our benchmark rate took a positive turn and clocked in at 6.625% (6.628% APR).
· Weekly Market Data2 – With the real estate market starting to shake off some of the cobwebs, we saw active listings make another move higher, hitting 5,294 homes on the market. A solid increase in new listing activity (1,246 new listings) with a shade fewer homes going under contract (1,028 homes) contributed to the uptick. Median Days on Market came in slightly lower at 14 days. (Source REColorado, all DMAR counties, this past week – Thursday to Wednesday).
· Columbine Team Insight – Another solid week of buyer activity resulted in 88% of offers being accepted at an average of 1.5% below list price. The majority of offers were essentially at list price, with one outlier property accepting an offer at roughly 7% below list price – it was most likely overpriced to begin. Only one offer was over list price by 2%.
· Market Trends – As wholesale mortgage brokers we have access to a wide range of loan products through our many lenders. Not only do we have all the standard conventional Fannie Mae and Freddie Mac loan products as well as government (FHA, VA, and USDA) and Jumbo loans, but we also have access to a number of specialty loan products / programs. Here are a few notables: (a) Community Reinvestment Act Incentives, (b) All-In-One HELOC Sweep, (c) HECM Reverse Mortgages, (d) Down Payment Assistance, (e) Doctor Loans with up to 100% financing, (f) Buy Before You Sell, (g) Investor DSCR Loans, and (h) Alternative Income (Bank Statement / Asset Depletion) Programs. If you’ve seen it advertised, it is likely available through one of our lenders.
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 6.625%, and a P&I payment of $3,153. The Annual Percentage Rate (APR) is 6.628%, which reflects a lender credit of 0.109% ($523). 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 03/07/2024 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 02/29/2024 to 03/06/2024. 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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