A Metro Denver Real Estate Company
There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings … but rather a slowdown in the pace of sales. And remember that a month’s supply measures the inventory relative to the sales pace. Same inventory, fewer sales, means more months’ supply.
– Mark Fleming, Chief Economist, First American
The highest inflation rate since the 1950’s was 13.3% in 1980. The current rate is the highest in 40 years. Note that until 2021, inflation remained below mtg rates. The sharp increases in both rates occurred because of the Federal Government’s response to COVID, pumping trillions of unearned dollars into an economy with not enough goods to absorb the available cash. Consumers can absorb higher mortgage rates if they have available income.
The 10-year Treasury note dropped below 3% on June 30. The average mortgage interest tends to post at 2.20% higher than the 10-year note, so today Fannie and Freddie rates at 5.7% is an indicator that the mortgage market is pricing in the expected Federal Reserve’s increase of 50 basis points later in July. If that is true, mortgage rates may settle at 6% or less as we move into the fall.
Novella Real Estate
5600 S. Quebec St., #150D
Greenwood Village, CO 80111
(303)350-5838
