Weekly Market Update, Real Estate Statistics & National News – November 4, 2023

LOCAL MARKET TAKEAWAYS

 

Local Boulder realtors indicate that all segments of the market are seeing successful buying and selling.  We continue to be in a (mostly) low inventory environment, which can create opportunities for sellers. Interest rates fluctuate, so buyers, watch carefully and lock in when you see a good rate. Cash buyers are in an extremely strong position.

Local Market Nitty Gritty – Boulder County

 

Over the last four weeks, the Boulder real estate agents here at Burgess Group have observed weekly price fluctuations of 82, 73, 94, and 107, in line with the usual seasonal trend. It’s common for numerous sellers to reduce their listed prices before Thanksgiving or Christmas to incentivize prospective buyers to make a purchase.

MORTGAGE RATES DIP DOWN BUT COULD DIP BACK UP TODAY/SOON

 

This decrease follows a peak of 8.03% on October 19. Prospective homebuyers considering when to secure a mortgage rate may have taken action to secure a loan.

 

There are two key economic factors contributing to this temporary decline in mortgage rates:

 

The treasury refunding announcement made a more significant impact than usual. The quarterly refunding statement, which outlines the government’s funding strategy, typically goes unnoticed, but this month it garnered attention because it could influence interest rates.

 

The treasury revealed smaller-than-expected increases in the sizes of 10-year and 30-year auctions, meaning they will issue less long-term debt than the market had anticipated while increasing short-term debt issuance.

 

This is a reversal from an earlier announcement this year, which surprised markets by favoring more long-term debt issuance. That prior announcement contributed to rising long-term rates, including mortgage rates, in recent months. This shift is now contributing to a decline in rates.

 

In its November 1 meeting, the Fed maintained interest rates at their current 22-year high, as expected, without further increases. The Fed signaled its intention to keep rates elevated into 2024 as part of its strategy to combat inflation and cool the economy. They also left open the possibility of one more rate hike this year.

 

While this announcement didn’t significantly impact the markets, it did play a role in driving down bond yields, thereby exerting downward pressure on mortgage rates. Additionally, some investors may have waited until after the Fed announcement to respond to the treasury refunding news.

Thus, interest rates, including mortgage rates, saw a slight additional decline due to the Fed’s stance.

 

However, it’s important to note that economic data can fluctuate, and most reports have the potential to influence mortgage rates. The new jobs report just came in slightly lower than expected, which could have a positive ripple effect on mortgages.

 

Prospective homebuyers should watch rates carefully right now, as mortgage rates will likely react to the jobs report and then settle for a bit.

 

Consult with your mortgage broker for personalized advice, as everyone’s financial situation is unique.

 

 

 

Construction Spending Increased 0.4% in September

National Association of Realtors CEO quits earlier than expected after federal lawsuit loss