FROM THE DESK OF SCOTT PALMER:
This is a very comprehensive look at the economy on a national scale. If you tire of reading the details, skip forward to page 18 to read the outlook for the residential real estate market. Lot’s of good information there, including this comment:
“Among major metro areas, markets that have seen supply and demand move back into balance and also seen general economic conditions improve include Boston, Central New Jersey, Denver, and Dallas/Fort Worth“.
This is good news for Denver and it means we should continue to see our inventory levels return to normal and values stabilize. Now the issue to be aware of will be INTEREST RATES!
Many of you will recall that we’ve been talking about the 10-year bond yields and how mortgage rates tend to track up and down with the bond yields. At one our last meetings we mentioned that rates are moving up. They continue to do so. In fact, since QE2 started, we have experienced an historically fast rise in the 10-year bond yield (ended today at 3.26%). As a result, mortgage interest rates have moved up significantly in the past few weeks and there are currently no signs that they will go back down. This increase in mortgage interest rates diminishes the buying power for most Americans. So as rates rise, we’ll see start to see clients looking at lower priced homes to compensate. Not good news on that front.
Christian, Travis, and I are all here and available to help you sell more homes in 2011 and to help your clients get the most possible from their financing. Please call us any time we can be of assistance.
Have a great day everyone!
Scott L. Palmer
Private Mortgage Banker
Wells Fargo Private Mortgage Banking
9350 E. Arapahoe Road #350
Greenwood Village, CO 80112