Financial Updates

Quick Rebound Predicted For Colorado's Economy

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Sunday, October 11th, 2009 at 5:03pm. 414 Views, 0 Comments.

According to the University of Colorado at Boulder's leading economist, Colorado appears to be poised as amongst the first states to exit this recession as reported by The Denver Business Journal.

At a gathering of clients of Denver-based financial-planning firm, Richard Wobbekind indicated that "We may be one of the first states out". He further stated that if technology and business spending fuel the recovery, as some analysts expect given anemic consumer spending, then Colorado is in a strong position to benefit. Current forecasts call for Colorado's to return to a 0.4 percent job growth in 2010 placing it in the fourth-best position among all states.

Any recovery will be sluggish at best, Wobbekind cautioned. But unlike some economists, he doesn't expect…

Denver’s Labor Market Stronger Than Most Cities

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Wednesday, October 7th, 2009 at 11:26pm. 283 Views, 0 Comments.

Denver ranked 37th in labor-market strength among the nation’s 100 largest labor markets, reports Portfolio.com, a national business-news website. The city slipped from its No. 30 ranking last year.

Although Denver lost tens of thousands of jobs over the last year, it still did better than most cities. Porfolio.com calculates that the Denver area gained 25,000 private-sector jobs between 2004 and 2009 (up 2.5 percent), but lost 55,400 jobs between 2008 and 2009 (down 5.1 percent).

In comparison, jobs in the nation’s strongest job market--Austin, Texas-- grew 16.6 percent between 2004 and 2009, and decreased 1.2 percent between 2008 and 2009. Rounding out the top five strongest labor markets on the Portfolio.com list were San Antonio; Baton Rouge, La.;…

States Make Bridge Loans Available to First-Time Home Buyers

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Saturday, May 23rd, 2009 at 11:02am. 733 Views, 0 Comments.

Many states started monetizing the first-time homebuyer tax credit before the U.S. Department of Housing and Urban Development (HUD) announced its plan to do so. Nearly a dozen states make bridge loans (advance loans) available to households that want to claim the tax credit, Brian Summerfield reports in REALTOR® Magazine. The loan is repayable with proceeds from the first-time homebuyer’s tax credit.

On May 13, HUD Secretary Shaun Donovan announced the department will allow consumers to obtain a bridge loan, repayable with proceeds from their tax credit, to help cover their down payment. Guidelines for the new policy will be released shortly.

For states to consider offering bridge loans, they need to be convinced they will get a…

Rates On Bigger Mortgage Loans May Finally Come Down

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Saturday, May 2nd, 2009 at 6:53pm. 278 Views, 0 Comments.

The cost of home loans from $625,500 to $729,750 in high-cost regions should come down in the next few weeks, Kathleen Pender reported in SFGate.com. Although the economic stimulus act passed in February increased the conforming loan limit in high-cost regions to a maximum of $729,750 for single-family homes through the end of this year, lenders have been waiting for Fannie and Freddie to issue underwriting criteria before lowering their rates. Fannie issued its criteria March 30 and Freddie on April 16. Both will start buying loans of up to $729,750 from lenders on May 4.  

The conforming-loan limit is the biggest mortgage that can be purchased by Fannie Mae and Freddie Mac. Anything over the limit is called a jumbo loan, which costs considerably more. On…

Luxury Homes More Affordable with Decline In Jumbo Loan Interest Rate

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Sunday, April 5th, 2009 at 9:16am. 263 Views, 0 Comments.

It might become easier to buy a house worth $1 million or more, writer Prashant Gopal reported on BusinessWeek.com, because rates for jumbo mortgages could fall to more affordable levels.

The average interest rate for a jumbo loan has dropped from a high of 7.9 percent at the end of October to 6.6 percent. That is the lowest average rate since the end of 2007, according to financial publisher HSH.com in Pompton Plains, N.J.

The underwriting requirements, however, are strict. Borrowers typically need a down payment of at least 20 percent, a credit score of above 720, full financial documentation, and at least six months of cash reserves. In some markets, the down payment requirement is as much as 40 percent.

Declining interest rates for jumbo loans is…

Mortgage Interest Rates Go Even Lower

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Sunday, March 29th, 2009 at 1:29pm. 155 Views, 0 Comments.

The Federal Housing Finance Agency today reported that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 6 basis points to 5.03 percent in February. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 19 basis points to 4.92 percent in February. The reported rates depict market conditions prevailing in mid- to late January.

The agency report also included the following statistics:

• Initial fees and charges were 0.57 percent of the loan balance in February, down 0.07 percent from 0.64 in January.
• 47 percent of the purchase-money mortgage loans originated in February were "no-point" mortgages, up from 41 percent in January.
• The average term was 28.1 years in February, down…

Colorado Mortgage Rates Continue To Fall

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Wednesday, March 25th, 2009 at 8:46am. 159 Views, 0 Comments.

Market watchers expect the Federal Reserve's decision to buy U.S. Treasuries will drive down mortgage rates in coming weeks, the Denver Business Journal reports, but rates are already falling both nationally and in Colorado.

Freddie Mac's weekly nationwide rate report says 30-year fixed-rate mortgages fell to an average of 4.98 percent this week, just shy of the all-time low 4.96 percent in mid-January.  In comparison, a year ago, 30-year mortgages were averaging 5.87 percent.

Existing homeowners appear to be lining up to lock in new mortgages at lower rates. Fannie Mae’s refinancing volume surged to $41 billion last month. The Mortgage Bankers Association said applications to refinance existing mortgages jumped 30 percent last week.

NAR Applauds Federal Reserve Purchase of More Securities

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Tuesday, March 24th, 2009 at 10:24am. 144 Views, 0 Comments.

“The National Association of Realtors® applauds the Federal Reserve announcement today that it would purchase an additional $750 billion in Fannie Mae and Freddie Mac mortgage-backed securities and up to $300 billion in longer term Treasury securities,” National Association of Realtors® President Charles McMillan stated on March 18. “This is great news for American home buyers and homeowners because mortgage interest rates will continue to remain at historic lows.”

Greater numbers of home buyers will be able to purchase a home, he adds, and homeowners facing challenges will be able to refinance into better terms. The Federal Reserve’s move will push affordability conditions to the best levels in 40 years.

Continued low rates will also lessen foreclosure…

Mayor Launches Greener Denver Climate Prosperity Program

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Monday, March 23rd, 2009 at 9:52am. 164 Views, 0 Comments.

“Greener Denver is a triple win for our community, benefiting our businesses, our environment and our economy,” Mayor John Hickenlooper said March 17 in a Denver Office of Economic Development press release.  “It will help local businesses save money, grow the demand for green products and services and train the green workforce of the future.”

Greener Denver, a strategic initiative to reduce greenhouse gas emissions and expand economic opportunities for local businesses. Denver is one of eight cities selected last fall by the Rockefeller Brothers Fund to participate in its Climate Prosperity Project. The city’s initiative is designed to transform the economy, achieve climate goals and ensure social equity in a sustainable future. It builds on Mayor…

Housing Affordability Reaches A Record High

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Monday, March 9th, 2009 at 7:59pm. 176 Views, 0 Comments.

The Housing Affordability Index (HAI) shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970, the National Association of Realtors reports.  The HAI rose 13.6 points in January.

“Housing affordability is at a record high– the buying power of a typical family has risen significantly,” said NAR President Charles McMillan. “With the drop in interest rates, a median-income family can afford a home costing $20,000 more than a year ago for the same monthly mortgage payment.”

The HAI indicates a median-income family earning $59,800 could afford a home costing $283,400 in January with a 20 percent down payment. In comparison, a year ago a typical family could afford a home…