Latest from Blog

All
  • All
  • Housing affordability crisis
  • Local Denver economic news
  • Local Denver real estate news and stats
  • National Economic News
  • National real estate news and stats
  • New construction data and info
  • Uncategorized

The Fed Caused a Rally in the Mortgage Bond Market

I can’t remember the last time the Fed and Chairman Powell caused the mortgage bond market to rally after one of their meetings; but it happened yesterday. Larry Kudlow who worked for Paul Volcker back in the 70’s said today that Chairman Powell is NO Paul Volcker as his comments and the Fed’s action plan…

Home Prices Have Increased by 5.75% a Year Since 2006

For the last 2 years we have been talking endlessly about how fast home prices have been rising as the average sale prices of a single-family detached home last month was $792k. Is this price too high? In 2006 the average sale price of a single-family detached home was $322k. If home prices had never…

Why Are Homebuyers Unsuccessful?

The NAHB Economics Team released a report recently on what home buyers are thinking and doing after searching for a home unsuccessfully for the last 3 months as of March 31st– · The #1 reason (48%) why they haven’t bought yet is they can’t find a home at a price they can afford. · 34%…

61% of CO Mortgage Holders Have a Rate < 4%

Back on April 19th Redfin released a report on how many homeowners have a mortgage rate < 4% as of December 31st based on data from FHFA. Nationally about 51% of homeowners with a mortgage have a rate < 4%. Here in CO 61% of homeowners with a mortgage have a rate below 4%. How…

Inflation Might Get Much Worse

One of my favorite people to read every week is John Mauldin and here is what he wrote based on his trusted contacts in Shanghai that has been in a 3-week complete Covid shutdown– “This is what three weeks of downtime does. Ships arrive and can’t unload or be loaded because the workers who would…

Tips in How to Write Winning Offers

I recently held a class titled How To Write Winning Offers with First Alliance Title and Greg Parham. Here are some ideas I learned that you might find interesting- · Ask your buyers this question-“Are you willing to operate within the parameters of current market conditions? · Buyers need to see and understand the clauses…

A Bill to End Junior Debt in Metro Districts

House Bill 22-1363 will be heard on the 26th in its first House committee. My biggest concern for the last 2 years is the junior debt being issued and held by the developers or people close them. This bill would provide some much needed Metro District reforms such as- · Would give local governments more…

The Fed Has Caused Uncertainty

I read a lengthy article from Housing Wire on how the Fed’s retreat from the mortgage bond market is causing short-term uncertainty or even panic. The Fed quit purchasing new mortgage bonds in early March and mortgage rates were 4% and are now over 5%. Now the Fed wants to quit purchasing mortgage bonds that…

Here’s Why The Housing Market Needs Higher Rates

This was a big story on Housing Wire after they interviewed Logan Mohtashami. Logan cites the only tool to cool off the housing market is higher mortgage rates especially when supply keeps dropping. Thus, we must slow down demand and the best and only way to do this is higher mortgage rates. Logan is correct,…

Mortgage Rate May Hit 6% This Year

The Fed last week shook up the markets BIG-TIME, first with comments from Vice Chair Lael Brainard last Tuesday. Lael is considered a strong “dove” so her comments were shocking to say the least. She said the Fed needs to start reducing its balance sheet as soon as May and that they will shrink their…

Metro Denver Is Barely Growing

The U.S. Census Bureau reported that from July 1, 2020 to July 1, 2021 that the Denver metro area population only increased by 683 people to 3,241,942 when you include Boulder County. Our state grew by 27,761 people to eclipse 5.8 million residents. Here is the county by county count- · Denver-down 6,167 residents ·…

Why Shopping Around For a Mortgage Lender By Rate Can Be Dangerous

I am being rate shopped recently much more often than before I think it’s because rates have risen so far so fast and consumers can’t believe how high rates are. So, they call around hoping someone has a rate in the 3’s still. Is selecting a mortgage lender by who has the lowest rate a…