PRSRT STD US POSTAGE PA ID PERMIT 745 COLO SPGS CO
Vol. 10 No.10
The recent drop in interest rates appears to be short-lived. Mortgage rates inched higher last week, prompting loan demand to soften. Total mortgage application volume, which includes home purchases and refinancings, dropped 1.5 percent last week compared to the previous week on a seasonally adjusted basis, the Mortgage Bankers Association reported Wednesday. Applications are now 15.4 percent lower than a year ago. Refinance volume, which tends to be the most rate-sensitive, dropped 2 percent for the week and is down nearly 34 percent from a year ago, when interest rates were lower. Mortgage applications for home purchases also dropped 2 percent for the week but are just 0.2 percent lower than a year ago, the MBA reports. This is one of the few times this year that purchase applications have been down on an annual basis. Economists note that a severe shortage of homes for sale may be more of an issue for home buyers than the uptick in interest rates, however. The 30-year fixed-rate mortgage averaged 4.83 percent, up See Rates | Page 2
How to close successfully in a seller’s market
YOU DID IT!
NO, YOU DID IT!
Top 10 threats to real estate in 2019 Rising interest rates and the economy are the top two current issues to watch in real estate, according to the Counselors of Real Estate’s Top Ten Issues Affecting Real Estate 20182019, a list of the biggest threats to the housing market. For the first time, CRE broke its annual list down into current and longer-term issues to watch during the industry’s next year.
Top Current Issues to Watch 1. Interest rates and the economy: As interest rates rise, commercial and residential real estate markets are seeing several changes, such as decreasing demand for commercial property and higher home mortgage rates. Rate increases are making homes less affordable and are also limiting the value appreciation for commercial real estate. “Lack of wage growth for all but the wealthiest population segment is dampening housing demand, and limiting consumer spending that the economy needs for growth,” the report notes. 2. Politics and political uncertainty: Tax reform and policies aimed at balancing trade with other countries
will have an impact on jobs, incomes, and both commercial and residential property, according to the report. “Congressional action to relax certain bank lending and asset management regulations was also among developing trends that may improve access to capital,” the report notes. 3. Housing affordability: The lack of affordable homes across income brackets, excluding the most wealthy, is being fueled by low wages, rising mortgage rates, and the underproduction of housing for nearly two decades, according to the report. 4. Generational change/demographics: Four distinct generations are exerting influence on commercial and residential real estate, such as in office design, student and elder housing, amenities, and location preferences. 5. E-commerce and logistics: Volatility in the retail sector, such as from the increase of e-commerce, is leading to a growth in warehouses. See Long Term Issues | Page 4
The market is hot. And those who have been searching for a home, might have already compromised a lot in order to remain within budget. But unfortunately, rising home values are not predicted to stop any time soon. Per Zillow data collected through April of 2018, Colorado Springs home values have gone up 11.2% over the past year, with predictions to rise 6.1% within the next year.* Colorado Springs home values have gone up 11.2% over the past year
What does that mean for buyers? How can they ensure a successful bid on a home while competing with multiple buyers? In a market where inventory is lower than demand, home seekers are advised to come prepared. This means having an established relationship with a lender and an approval letter in hand. Sellers are more likely to take them seriously and accept their offer if there’s a lender willing to finance the transaction. See Closings | Page 8
HBA PAC Golf Tournament
WCR - A Night in Black & White
Jay Gupta's May Housing Stats
PAGE 5
PAGE 6
PAGE 11
Mobile Issue (Beta)
Mortgage rates inch up, mortgage applications recede
June 25, 2018
www.csrej.com
National News............ Page 2 Local News................ Page 8 On the Move.............. Page 13 Local Expert.............. Page 14 Around the Corner....... Page 15
Honest & Ethical Service from People You Know. Debbie Havens
Joe Drew
(719) 264-1967
(719) 266-6155
Loan Officer Assistant
NMLS #1492476 State Lic #100507484
NMLS #1561851 State Lic #100506142
Branch Manager 1730 Chapel Hills Drive Suite 100, Colorado Springs, CO 80920
HELPFUL TIP: Check the license status of your mortgage broker at the Colorado Division of Real Estate’s website. Corp NMLS #3113
NMLS #653845 State Lic #100018256
debbie.havens@academymortgage.com
Loan Officer
joe.drew@academymortgage.com
Amanda Smith
(719) 264-1952
amandas@academymortgage.com
Nathan Johnson
Loan Officer
Samantha Barton
(719) 264-7972
Loan Officer Assistant
NMLS #1647443 State Lic #100018505
NMLS # 1662419 State Lic #100509254
nathan.johnson@academymortgage.com
(719) 424-7220
samantha.barton@academymortgage.com MAC218-1453439