- Mortgage Rates1 – Unfortunately we lost some ground this week and our benchmark rate slid back up to 6.875% (APR 6.955%). This week’s drivers came from decisions beyond our borders when Saudi Arabi, the world’s top oil exporter, announced that it would be voluntarily reducing its output to 9 million barrels a day from 10 million which won’t help inflation. Next came the Bank of Canada and the Reserve Bank of Australia, each of which raised their benchmark rates by 25bps (their equivalents of the Fed Funds Rate) – which, in essence, gives the Fed the greenlight to hike rates – whether at next week’s meeting or their next meeting in July.
- Weekly Market Data2 – In good news our number of active listings continued to rise this week with 1,351 new listings hitting the market, bringing our total number of active listings to 5,281. This is the largest increase in new listings we’ve seen in a long time as sellers make a push to get their homes listed for the summer season. Buyers also picked up the pace, with almost one third of the new listings going under contract in their first week on the market. This activity dropped our Median Days on Market (for those homes that closed) back down to 5 days. (Source: REColorado, all DMAR counties, this past week -Thursday to Wednesday).
- Columbine Team Insight – The market picked back up this past weekend as buyers got back out there and made offers. Our team saw 56% of offers accepted and experienced only moderate competition. Of those offers that were accepted ALL of them were either below list price or included seller concessions. On average, accepted offers were 2% below list price. It is a great time to get out there and see what you can negotiate!
- Market Trends – As anticipated, the pendulum is swinging back towards buyers as we move into the summer months and inventory improves. With rates holding in the upper six’s, we are not seeing an inflow of new buyers coming into the market, but that leaves those buyers who have already been looking in a better competitive position. We are also seeing seller concessions coming back into play, even for houses that have only been on the market for a weekend or two. These concessions can have a large impact on the amount of money buyers need to bring to the table, as well as potentially being used for temporary rate buydowns, easing the pressure of high rates.
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 6.955% with a 0.036% lender credit ($173). 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 06/08/2023 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 06/01/2023 to 06/07/2023. 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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