Monthly Mortgage Market Trends

September 2019

September Mortgage Trends Insight
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NICOLE RUETH

Producing Branch Manager

Let’s be clear… there are opportunities in the uncertainty

I want to channel my inner Mr. Rogers and share a word of the day.. uncertainty. Uncertainty categorizes not only our current economic market but also the current housing market… driven by the threat of a looming recession, trade wars, and yield curve inversion. Global growth and business confidence is down while consumer spending remains healthy. The current low interest rates and rising family income is improving home affordability and offsetting the effects of the continued lack of inventory.

Mortgage purchase applications are up 5% year-over-year as buyer demand remains strong. So why are the month-over-month and year-over-year solds down? Buyers are becoming more discerning. Even though active inventory is just over half of August’s average (9350 current compared to the average 16,761 active listings); they see this as abundant inventory given its comparison over the last 6 years. Buyers are also no longer swayed by this being a seller’s market, and it is... with 1.81 months of inventory. They want what they want. Several title companies are saying as much as 33% of contracts are falling out due largely in part to inspections…this isn’t a surprise to those of you with boots on the ground. Buyers are in a buyers market and sellers are in a sellers market. Both need to have their expectations set for this new reality.

Here’s what I know.. interest rates are at 3 year lows hovering around 3.6% (with .5% discount); appreciation year-over-year is 4.17%; and inventory is up 13.64%. I love this market! Buyers have more choices and can afford more than they have in years. Which is perfect timing as millennials are entering the market with increasing force. Over half of Gen Z plans on buying their first home before the age of 30. Sellers will still get top dollar for their home if priced right and staged well.  Plus, sellers are able to turn around and move up with rates low.  

Another phenomenon we are seeing is more buyers are taking advantage of increasing rents and the opportunities real estate gives for building long term wealth and converting their primary homes to rentals. Now, I know, this does not bode well for the lack of inventory, but is exciting from a wealth building perspective. As you know, I am a huge proponent of building wealth through real estate. And when I see continued appreciation, increasing rents, and increased cash flow due to lower interest rates.. .well, I’m a big fan!

If you want to secure your financial future through real estate or simply want to buy your first home; you need to give me a call.. because this is what our team does best!

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation

 

Why The Rueth Team?

The Rueth Team is dedicated to our clients success. It is this driving mission that keeps our team constantly learning and pushing beyond our boundaries. We find the solutions other lenders simply can’t (or won’t). We make a commitment to each borrower, fulfilling it with hard work, constant communication and creative problem solving. When a referral partner gives our name, they are confident knowing they are giving their clients the best chance of a smooth, successful experience.

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ARE YOU AN AGENT INTERESTED IN CONTINUING YOUR EDUCATION? RESERVE YOUR SEAT TODAY!

Contact Info

303-214-6393
nrueth@fairwaymc.com   750 W Hampden Ave Suite 500 Englewood, Colorado 80110, United States

 

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