Content provided by Bellco Home Loans
Each new day delivers fresh economic news that leaves so much open for interpretation. Instead of trying to predict the future, let’s take a look back at the first few months of 2023 to see what we’ve learned during the first quarter of the year.
What’s Old Has (Quickly) Become New Again
Buyer activity was off to a strong start in 2023, with each passing month recording a steady increase in the number of homes under contract. Data from RE Colorado shows a 31% increase in closed listings month over month.
The market has been heating up, right along with the spring weather, as competition increases. Many real estate agents are seeing multiple offers above asking price since supply remains below demand—and we’re not predicting relief in this area anytime soon.
According to HousingWire, mortgage rates continue to fall as banking challenges increase. The average 30-year fixed rate was 6.55% for the week ending March 19, 2023, down from the previous few weeks when it hovered closer to 7%.
Buyers clearly have a strong appetite for real estate, and with a rate environment that appears to be moving in a favorable direction, the stage is set for a potentially busy buying season.
Follow the Leader Remains a Common Theme
When rates go down, application volume often goes up. For the week ending March 19, 2023, application volume increased by 7%. When applications rise, competition rises in concert, resulting in more showings, offers, and escalating prices. With inventory down and millennials sitting squarely in their peak buying years, the competition is readily apparent in today’s market.
Only time will tell, however, the early indicators for 2023 have signaled appreciating values, a competitive market, and an ongoing game of cat and mouse as multiple offers and elevated demand fuel one another.
Opportunities are blooming, so if you’re thinking about buying a home in 2023, get in touch with a mortgage expert. The Bellco Home Loans team is here to help if you have any questions about your options.
Bellco Home Loans is a joint venture between Bellco Credit Union and Cherry Creek Mortgage, an independent mortgage lender that’s been helping families attain homeownership for over 30 years. Bellco Home Loans is an equal housing opportunity lender. All applications subject to approval. Bellco Home Loans, LLC, NMLS #2085298.
This material is informational only and not an advertisement to extend credit as defined by TILA/Regulation Z nor an application for credit as defined by RESPA/Regulation X. All applications are subject to underwriting approval and determining applicant’s ability to repay. Not all applicants are eligible for or qualify for all loan products offered. All loan programs, terms and conditions are subject to change without notice. Rates and terms are valid as of the date of printing/distribution [March 2023].