Market Update, December 15, 2023

The average rate for a 30-year fixed mortgage today is 6.62%. The last time we saw rates this low was in May.

An increase in mortgage applications last week, when rates were higher than today, indicates these lower rates are beginning to bring buyers back into the market. According to the Mortgage Banker’s Association, applications were up 7.4 percent on a seasonally adjusted basis from one week earlier.

If rates continue to fall, we’ll see more activity in the market. There’s a lot of pent-up demand because anyone considering purchasing a home – first-time buyers and people with homes to sell – has been sitting on the sidelines, waiting for rates to go down. predicts rates will hover around where they are and average 6.8% throughout 2024. If inflation continues to improve, predicts rates could fall to 6.5% by the end of next year. They also expect that prices will slightly decline next year.

During 2023, according to, mortgage payments increased nearly 20% compared to payments in 2022. Payments on new mortgages were almost double what they were in 2020.

In other words, affordability became a huge issue this year as the costs for a typical home rose to about 37% of typical income.

If rates come down and prices decrease, affordability issues will get better. If wages rise, that will help, too. It’s likely to take more than a year for homes to reach historic averages regarding affordability.

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For assistance before you buy or sell a home, contact David and Tom at The Principal Team. Call us now at 720-782-2468 or schedule a time for us to call you.

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During the last week:
New Listings – 623
Back On Market – 146
Price Increase – 56
Price Decrease – 635
Pending – 870
Withdrawn – 201
Closed – 720
Expired – 283

Previous Week:
New Listings – 808
Back On Market – 217
Price Increase – 97
Price Decrease – 1026
Pending – 970
Withdrawn – 227
Closed – 1053
Expired – 561

Based on data from REColorado®

“I have used David Lampe in three estate transactions in the last few years. If you need a realtor who follows through and keeps in constant communication responding to your requests in quick time and is affordable then this is your realtor. I highly recommend David for all your real estate needs!!”
– Roman M., Johnstown

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