September 2013

Found 13 blog entries for September 2013.

Everything is working for home buyers and those that haven't refinanced yet.  Mortgage rates have continued to fall and this morning 30 year mortgages dropped to 4.25%.  The 10 year treasury hit a low this morning of 2.60%, ticked back up slightly and will probably finish the day in the 2.63% range as some investors take short term profits and others hedge slightly for the weekend.

What's Happening

Most all the momentum is from the postponement of the Fed's tapering. The economic news from the end of the week failed to contradict the Fed's reasoning for delaying the taper, so the outlook for subsidized mortgage rates continuing through year end gained some momentum.  The actual news was:

Thursday's GDP report came in the same as last month but

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Rates Improve as Fed Bond Purchases Likely to Continue Through Year End

Mortgage interest rates improved this past week as it appears that the Federal Reserve will continue to purchase Treasuries and Mortgage Backed Securities at their current levels through the end of the year.  Tapering is still an option though, depending upon the strength of the new economic data.  Markets are also focused on the potential government shutdown on Monday if a continuing resolution is not passed to fund the government.  Economic data was mixed. 
Economic data stronger than expected included the July FHFA Home Price Index, August Durable Goods Orders, and weekly jobless claims.  The four week average of jobless claims fell to its lowest level since June 2007. 

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Rates came down Wednesday and are still the best we've seen in quite some time but the possibility of rates going lower seems remote at this point.

So What's Happening?

In a nutshell, strong economic news offset by no immediate tapering, means stable rates.

Since Wednesday afternoon's announcement from Fed chairman Bernanke that the Fed was not going to immediately start their tapering of purchases of mortgage backed securities, virtually all the economic information has been very positive, prompting St Louis Reserve President James Bullard to draw attention to himself, again.  His comments on Bloomberg TV were " This was a close decision here in September. It's possible you get some data that can change the complexion for the outlook and make

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A good day for interest rates as the 30 year fixed dropped back to 4.5% and the 10 year Treasuries are down to 2.70% and still falling.

 So What's Happening?

The economic news this week was pretty much as expected with the one exception being Housing Starts.  Starts for last month were revised downward 130,000 and August's number, while technically rising (only because July's numbers were revised down) were 240,000 lower than expectations.  As expected and Housing Starts being down would be good for interest rates but not in a big way.  The big mover is Fed Chair Ben Bernanke's press conference.  He announced that despite the overwhelming expectations of the markets, the Fed would not start tapering their purchase of mortgage back securities until

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The condominium/townhome market is the “big news” in Boulder County real estate, with 180 units selling in August – a 47.5 percent increase over the 122 that sold a year ago.    

Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association, says the market is indicative of what’s happening around the country: home buyers are finding attached dwellings more affordable and easy to get into.  

 Single-family home sales of 450 also outpaced those in August 2012, jumping 19.3 percent, while they decreased about 8.4 percent compared with 491 sales in July 2013.

 “That’s consistent with the trends you would expect to see in the market – slowing as you head into the fall,” Hotard says. 

Attached-dwelling sales

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The percentage of underwater homeowners in the U.S. is quickly shrinking, according to recent reports by RealtyTrac and CoreLogic, which could improve the inventory of homes on the market.

Most recently CoreLogic reports that a sharp rise in home prices helped 2.5 million more mortgage borrowers find equity in their homes once again in the second quarter. By the end of June, only 14.5 percent of mortgage borrowers remained underwater on their loans, compared with 19.7 percent at the end of the first quarter and 26 percent of borrowers owed more on their homes than they were worth four years ago. 

RealtyTrac also reports that since May, 600,000 home owners had emerged from being “deeply underwater.”

Mark Fleming, CoreLogic’s chief economist, tells

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Whether a recent college graduate with a new job, a young but growing family or a senior looking to downsize, most Americans will at some point ask themselves, “Should I rent or buy a house?” The answer is vague yet still true: “It depends on the state of housing and your circumstances,” according to Yahoo!

The old adage that “It’s always better to own than to rent” was shattered after the U.S. economy tanked and the housing bubble burst in 2008, and many Americans were drowning with upside-down mortgages (they owed more than their homes were worth). Suddenly, renting a home wasn’t such a bad idea.

Yahoo! provides these points to consider to help break down the decision, so that neither the emotional or economic issues receive more than their fair

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Rates Improve Slightly Despite Expected Fed Tapering

Mortgage interest rates improved slightly this past week despite markets continuing to expect that the Fed will taper its Treasury and Mortgage Backed Securities purchases at the conclusion of its FOMC meeting next week.  It appears, though, that the tapering is already priced into current market levels. 
Economic data of note included today’s August Retail Sales which were weaker than expected.  Retail sales increased 0.3% on expectations that they would increase 0.5%.  Excluding automobile sales, retail Sales increased 0.1% on expectations that they would increase 0.3%.  The University of Michigan Consumer Sentiment Index was reported at 76.8, its weakest level since April.  Markets expected the

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Boulder was one of only two Colorado metros with strong enough improvements in their housing prices from the first quarter of 2013 to the second to move up in nationwide rankings by the Federal Housing Finance Agency. However, no Colorado metro managed to break into the top 20 metros with the highest appreciation rates in the U.S.

While Boulder, with a one-year price appreciation rate of 6.06 percent, improved to No. 63 out of 306 in the second quarter from No. 76 in the first, Pueblo jumped 130 spots from No. 282 to No. 152 with a one-year appreciation rate of only 1.99 percent. Pueblo was still the lowest-ranking Colorado metro.

Despite dropping from No. 36 to No. 55, the Denver-Aurora-Broomfield metro was the highest-ranking Colorado metro with a

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A good midweek report after a somewhat volatile Monday and Tuesday.  The 10 year long bond closed Friday at 2.94%, down from its morning high of 2.98%.  Monday, it dropped to 2.87% before climbing back above 2.90%.  Twice yesterday rates jumped to the 2.96% support level before dropping back down. Today we saw the 2.96% support level tested again before the 10 year dropped to its current level of 2.91%.  Mortgage rates followed suit, hitting a solid 4.75% before retreating back to 4.625%.

What's Happening?

As we talked about Friday, there is no economic news of consequence this week until Thursday.  The rise and drop in rates are tied to the undecided but probable non-military resolution to Syria, a strong demand for the government's sale of 10 year

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