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Will Higher Rates Cause Home Prices to Drop?
Mortgage rates have risen by 0.80% from January 2021 (a record low) to an average of 3.45% for the week of January 13th according to Freddie Mac. Higher mortgage rates are leading some consumers to hope that home prices will drop. Unfortunately, that will not happen in metro Denver. Why? When you look at the number…
2 Stories You Need to Know
U-Haul reported that Colorado was one of the Top 10 growth states in 2021, meaning more people are moving here using U-Haul than there are people leaving Colorado. Second the NAHB reported that at the end of the year that lumber prices have increased by $18,600 since August, causing home prices to rise by $7,300.…
Mortgage Rates are Soaring on Second Homes
FHFA, the overseer of Fannie and Freddie announced early last week a HUGE change in mortgage pricing for borrowers needing a high balance loan amount (over $647,200) in metro Denver and even bigger changes for buyers of second homes. Why? “These targeted pricing changes will allow the enterprises (Fannie & Freddie) to better achieve their…
Denver is the #4 City for Young Professionals
I read a story from the DBJ Denver ranked #4 by Rent.com as being a great place to live and work for young professionals, from their early 20s to their mid 30s. Why? We have a diverse job market and a “happening social scene,” and great restaurants sports, and live entertainment. Thus, I expect more…
Financial News Update
⦁ Housing starts increased 11.8% in November from October. Starts are up 8.3% from last year.⦁ In the past year, single-family starts are down 0.8% and multi-family starts are up a whopping 37%!⦁ Building permits (a great sign of new housing to be started soon) were up 3.6% in November from October.⦁ In the past…
A Stunning Amount of Debt
David Migoya who wrote all the amazing stories for The Denver Post 2 years ago about metro districts is now writing for the Gazette in Denver and CO Springs. His latest story is about Aurora Highlands. The Metro District Board is voting soon to strap future homeowners with $515 million in new debt to begin…
New Loan Limits
The Case-Shiller Home Price Index which is regarded as the best report on home price inflation revealed that in September home prices across the country rose 1% from August. And from September 2020 to September 2021 home prices appreciated 19.5%.Here in Metro Denver our home prices appreciated by 21.2%. Also released last week the was…
Why are RE Investors Buying More Homes?
Redfin reported that in the 3 rd quarter RE investors purchased 18.2% of all homes sold in the 3 rd quarter. Year over year RE investors are purchasing 63% more homes in the last year. How does Redfin define a RE investor? The home is being purchased by a business entity such as an LLC…
8 Reasons Why There Will Be Very Few Distressed Sales
Here are the 8 reasons why we will see so few distressed sales across our country according to Logan Mohtashami, a housing analyst with Housing Wire. · According to the Federal Reserve mortgage debt payments as a percent of disposable incomes are at all-time lows and this data goes back to 1980. · According to the Federal…
Where are Mortgage Rates Going in 2022?
Logan Mohtashami, one of my favorite analysts was interviewed last week by Housing Wire. I will focus on his thoughts on Treasury yields and mortgage rates. He believes that the 4-decade trend of lower 10 Year Treasury Yields is stronger than any economic news. Second, he doesn’t see the 10 Year T-Bill yield going over 1.94%…
Where are Mortgage Rates Going in 2022?
Logan Mohtashami, one of my favorite analysts was interviewed last week by Housing Wire. I will focus on his thoughts on Treasury yields and mortgage rates. He believes that the 4-decade trend of lower 10 Year Treasury Yields is stronger than any economic news. Second, he doesn’t see the 10 Year T-Bill yield going over…
Zillow Offers is Upside Down
Zillow paused purchases of more homes under their Zillow Offers program. Why? Too many homes for sale and they lost $59 million in the 2nd quarter with Zillow Offers. Real estate industry analyst Mike Del Prete said in Phoenix that Zillow listed homes for sale on average for 6.2% LESS than what they paid for…
