Market Update, May 28, 2020
Mortgages are on our minds again this week. Rates set a new record low for the third time in three months. The average rate for a 30-year fixed mortgage fell to 3.15% this week. In fact, Freddie Mac data over the past five decades shows this is the lowest rate recorded. Buyers can have lower monthly payments for the same home than they would have had when rates were higher.
More than 4 million borrowers are in forbearance on their mortgage, where the lender has allowed a pause or reduction in payments for a limited time. The CARES Act was unclear on whether these people could refinance and take advantage of the low rates we’re seeing. Fortunately, the rules have been clarified and Fannie Mae and Freddie Mac will allow homeowners in forebearance due to COVID-19 to refinance or buy a new home as long as they make three payments in a row after their forebearance ends.
We continued to see an increase in showings in Colorado. As this graph shows, we’ve climbed back to where we were at this time last year after the sharp decline we saw during March and the first half of April.
Questions? Give us a call.
Reach David and Tom at The Principal Team at 720-408-7409.
Metro Denver Real Estate Market Activity
We continue to see withdrawn homes come back on the market, which gives buyers more to choose from. Some sellers may be over-estimating demand, though, since we also continue to see a large number of price decreases. Our clients who have priced well have received multiple offers quickly without having to go through multiple price reductions.
During the last week:
New Listings – 1422
Back On Market – 304
Price Increase – 176
Price Decrease – 1167
Pending – 2187
Withdrawn – 152
Closed – 958
Expired – 160
Previous Week:
New Listings – 1609
Back On Market – 402
Price Increase – 168
Price Decrease – 1315
Pending – 2352
Withdrawn – 191
Closed – 981
Expired – 203
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Based on data from REColorado®