· Mortgage Rates1 – Despite some up and down economic news early in the week, the FOMC (Federal Open Market Committee) came out strong on Wednesday with generally positive news regarding the Fed’s view on current inflation data (supported by improving PPI and CPI data). Their ‘dot-plot’ projections for the remainder of the year, however, took a little shine off the market and tempered the rally. After everything was said and done, our benchmark rate remained at 6.875% (6.897% APR).
· Weekly Market Data2 – And just like that, Active Inventory blew right through the 9,000 level, with 9,266 homes now on the market. Continued strength in new listings (1,548) and slowing pace of new homes going under contract (1,000) led to buyers having 484 more homes to choose from this week. Median Days on Market expanded slightly to 11 days. (Source REColorado, all DMAR counties, this past week – Thursday to Wednesday).
· Columbine Team Insight – It was a relatively slow week for the team with about half as many offers going out the door. In good news, all of the offers made were accepted, with an average price that was roughly 1% below list. With increased inventory and a stable buyer pool, there are more choices and less competition – now is a great time to look for that perfect home.
· Market Trends – With the NAR commission lawsuit settlement agreement impacting the discussion around who will pay for a buyer’s agents commission fees, the U.S. Department of Veterans Affairs issued a temporary fix that will allow homebuyers using VA loans to pay for their real estate agent’s commission. Prior to this change, VA policy stated that a veteran may not be charged a brokerage fee or commission… which would have significantly hampered homebuyers’ ability to use a VA loan to purchase a home once the settlement terms go into effect. The VA’s temporary fix will be subject to certain safeguards, such as the requirement that all buyer-broker fees charged to veterans “must be reasonable and customary within local markets,” but nevertheless represents a welcome clarification.
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 6.897%, which reflects a lender credit of 0.084% ($403). 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 06/13/2024 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 06/06/2024 to 06/12/2024. 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.
Recent Comments