Market Update, March 10, 2022
We’re watching interest rates and pricing predictions to get a sense of where the market is heading. Rates are almost certainly going to rise, but we don’t expect that to dampen the enthusiasm we’re seeing from buyers.
Sam Khater, Chief Economist at Freddie Mac said this week, “Geopolitical tensions caused U.S. Treasury yields to recede this week as investors moved to the safety of bonds, leading to a drop in mortgage rates. While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty. Consequently, rates are expected to stay low in the short-term but will likely increase in the coming months.”
NerdWallet’s Home and Mortgage Specialist, Holden Lewis, says, “Mortgage rates fell this week as investors sought safety by buying mortgage bonds…This decline in rates is temporary because the Federal Reserve will start its rate-raising campaign in earnest in the middle of the month.”
We like to watch the 10-year Treasury rate to get a sense of where interest rates are going. For the past 50 years, the 30-year mortgage rate has moved up and down in unison with the 10-year treasury rate.
What about prices?
In last week’s update, we mentioned that prices rose 5% in one month. Before the year began, experts predicted prices would rise this year somewhere between 4% and 9%. Recently, Reuters polled real estate analysts. They forecast a 10.3% price appreciation this year, up from their December prediction of 8%. The longer you wait to purchase a home, the more expensive it will be because of rising interest rates and rising home prices.
- Average Closed Price: $647,746
- Median Closed Price: $575,000
- Closed Homes: 3,202
- Average Days in the MLS: – 15
- Active Listings at the End of the Month: 1,226
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Metro Denver Real Estate Market Activity
During the last week:
New Listings – 1003
Back On Market – 119
Price Increase – 165
Price Decrease – 142
Pending – 1573
Withdrawn – 57
Closed – 1171
Expired – 63
New Listings – 995
Back On Market – 165
Price Increase – 182
Price Decrease – 131
Pending – 1379
Withdrawn – 50
Closed – 1456
Expired – 143
Based on data from REColorado®
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