· Mortgage Rates1 – Monthly reporting of jobs data hit the markets this week, with several important reports coming in stronger than expected, most notably this morning’s BLS Jobs Report that beat expectations by more than 50% (303k jobs created vs. expectations of 200k). The market’s initial response was relatively muted, but make no mistake, strong employment goes against the case for interest rate cuts. As of Friday morning, our benchmark rate stands at 6.875% (6.878% APR).
· Weekly Market Data2 – Picking up a little steam, but still not quite where it should be – Another week of more than 1,000 new listings and active inventory approaching the 6,000 range. With homes going under contract (904) falling of the pace of new listings hitting the market (1,168), inventory gains are to be expected. Median Days on Market fell to 10 days, a slight decrease from last week. (Source REColorado, all DMAR counties, this past week – Thursday to Wednesday).
· Columbine Team Insight – It was another week of solid competition with only 25% of offers being accepted. A number of our buyers lost out to offers that were nearing 5% over list price. It is good to remember that the list price does not necessarily indicate the value of the home – it can be intentionally set low to encourage a ‘quick sale’ or to instigate a bidding war; or it can be set higher if the seller is focused on maximizing their return. Many real estate professionals will say that setting the ‘right’ price is important to achieve optimal results, but it can be as much art as science and the listing strategy is never a one size fits all situation.
· Market Trends – Are you considering relocating for a new job but are concerned about qualifying for a mortgage? Fortunately, both conventional and government loans can accommodate job transitions, within certain parameters. In all cases, lenders will require the purchase be for a primary residence, and that the new employer is not a family member. Fannie Mae and Freddie Mac require that the offer of employment be for a salaried position, but FHA and the VA are a bit more flexible on income type. Importantly, any contingencies must be cleared, and the new job needs to have a documented start date; Fannie Mae and Freddie Mac require that the start date be within 90 days of the note date (closing date) and FHA requires this to be within 60 days while the VA is flexible based on having a valid reason for a delayed start date. If you or someone you know are considering both a new city and a new job, reach out and we can help you successfully navigate the transition.
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 6.875%, and a P&I payment of $3,153. The Annual Percentage Rate (APR) is 6.878%, which reflects a lender credit of 0.134% ($643). 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 04/05/2024 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 03/28/2024 to 04/03/2024. 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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