· Mortgage Rates1 – Yikes, who knew that CPI was actually a four-letter word? March inflation data was hotter than expected almost any way you look at it. Higher inflation suggests that the Fed will likely delay any previously anticipated rate cuts, with the markets now pricing in only two (2) cuts this year and a less than 50% chance that the first cut comes in June/July. As a result, our benchmark rate popped up to 7.125% (7.130% APR).
· Weekly Market Data2 – Well, that is a little more like it. With a shade more than 1,500 new listings hitting the market last week, it seems someone has decided it is time to start listing homes for sale. An increase of 31% week over week is a big deal, and if we see that pace continue, I think we can confidently call the 2024 Spring Selling season officially underway. The surge in new listings has pushed Active Listings up to 6,231, and our buyers are starting to sense that there are, in fact, more choices to be found. Median Days on Market fell to 8 days. (Source REColorado, all DMAR counties, this past week – Thursday to Wednesday).
· Columbine Team Insight – Buyers fared slightly better this past week, with 38% of offers being accepted. That said, many still faced some pretty stiff competition. Be sure to consult with your team to understand the impact of contract ‘enhancements’ – things like waiving deadlines, tightening a closing date, or offering to cover an appraisal gap. Favorable terms in conjunction with a strong offer can make the difference between your offer being accepted or not.
· Market Trends – In the real estate industry we often refer to the “spring market” as a time when sellers start listing their homes in greater numbers, in turn drawing buyers into the market. However, this period can vary and while it usually starts in March, it can arrive as early as February (like in 2022) or as late as May. This year we have seen a slow climb in inventory from the beginning of February until finally this past week we saw a sizeable spike, with inventory surging 6%. As we look forward to some genuinely beautiful weather in the forecast this upcoming weekend, it may be the right time to pick up that perfect home.
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 7.125%, and a P&I payment of $3,234. The Annual Percentage Rate (APR) is 7.130%, which reflects a lender credit of 0.024% ($115). 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 04/12/2024 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 04/04/2024 to 04/10/2024. 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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