Friday Fun Facts

Leading Indicator

We are watching close to see where the real estate market is headed.  Anecdotally we can tell you that the vast majority of transactions that are under contract are still closing.  We have seen very few transactions cancel because of employment issues or the wild swings of the stock market.

An interesting leading indicator was announced this week that sheds some light as to where the market is headed.  Each week the Mortgage Bankers Association releases their index which tracks new mortgage applications.

They track both purchase applications and refinance applications.  To no one’s surprise, the index was down this week but not as much as you may have guessed.

New purchase applications were down 11% compared to the same week this last year.  Refinance activity fell more sharply, down 34%.

This is a statistic we will watch closely as time goes on.

Each week our Chief Economist produces a video with the latest on the national economy and the housing market.  Reach out to us if you would like to see that video.

Posted on March 27, 2020 at 6:02 pm
Sarah Schilz | Category: Fort Collins Real Estate, News | Tagged , , ,

Lovely Stats

In honor of Valentine’s Day, here are some Northern Colorado stats we think you will love:

  • Prices are up 3.5% compared to last year
  • Inventory is up 10% which means there is more selection for buyers
  • We just had the most active January in terms of closings in over 10 years
  • Well over 13,000 residential properties representing $5.4 Billion of volume has sold in the last 12 months

If you would like to see a video recap of our annual Market Forecast you can watch that HERE.

Posted on February 14, 2020 at 4:31 pm
Sarah Schilz | Category: Fort Collins Real Estate, News | Tagged , , , , , ,

On Sale

With interest rates so low, one could argue that money is essentially on sale.

It’s actually half off.

30-year mortgage rates hit 3.75% which is exactly half of their long term average.

Rates have averaged 7.5% over the last 40 years so today buyers are getting half of that rate.

The “sale” on mortgage rates creates a significant savings in monthly payment because of the 1%/10% rule.

For every 1% change in interest rate, the monthly payment will change roughly 10%.

So when rates go up to 4.75%, a buyer’s payment will be 10% higher.

For example, the principal and interest payment on a $400,000 home with a 20% down payment at today’s rates is $1,482.

If rates were 1% higher, the payments jump up to $1,669.

Posted on August 9, 2019 at 7:52 pm
Sarah Schilz | Category: Fort Collins Real Estate, News, Northern Colorado Real Estate | Tagged , , , ,