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.
February Numbers
- 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
Earn thousands more when you sell your home. Our team provides superior service at a low cost. If you plan to sell your home soon, give us a call or schedule a consultation. Reach David and Tom at 720-782-2468.
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During the last week: New Listings – 1003 Back On Market – 119 Price Increase – 165 Price Decrease – 142 Pending – 1573 Withdrawn – 57 Closed – 1171 Expired – 63 | Previous Week: New Listings – 995 Back On Market – 165 Price Increase – 182 Price Decrease – 131 Pending – 1379 Withdrawn – 50 Closed – 1456 Expired – 143 — Based on data from REColorado® |
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