HOW'S THE MARKET?
Punxsutawney Phil (the groundhog) predicted a quick end to winter this year. So the saying, “March comes in like a lion, and goes out like a lamb,” might ring true. At least, that’s what “they” say, but here at The Group, we’re not convinced. While it is true the start of March is usually ferocious (WinterWonderGrass is March 1-3 this year, and it always seems to snow for it!), we are hopeful that big snow falls will continue through the month for all of our Spring Break visitors to enjoy. But hey, we don’t claim to be weather forecasters. So without further ado, let’s take a look at the market!
As of February 21, 2024, Routt County has 115 active residential listings. That’s down from 132 this time last month, and down about 32% from this time last year (168). The number of currently-pending listings (83) is up significantly from this time last month (32), and also up from this time last year (39). The closed listings county-wide in January 2024 (30) were lower than the prior month of December 2023 (45), and held steady compared to January of 2023 (30).
According to Freddie Mac, the national average for a 30-year fixed rate mortgage as of February 15, 2024, was 6.77%, which is .45 of a point higher than this time last month. While the sentiment on the street still remains optimistic on the housing market in 2024, analysts are uncertain when the turn will happen.
As of February 14, 2024 according to Inman, “Homebuyer demand for mortgages fell for the third week in a row last week as mortgage rates continued to rebound from December lows — a trend that’s continued this week after a discouraging inflation report.”
In Steamboat, according to The Steamboat Pilot, the Yampa Valley Housing Authority and the Brown’s Ranch affordable housing project faced some headwinds this week. Three election complaints were recently brought against the housing authority. One was quickly dropped by City Clerk Julie Franklin, and the second ruling has been delayed due to a lack of information on the topic. More information is being collected and a ruling is expected shortly. Brown’s Ranch is a proposed 420 acre development that would provide affordable housing units to Routt County.
We here at The Group would like to extend our heartfelt thanks to all of you, our clients. We are grateful for the opportunity to be your trusted advisors, and are here for any questions you may have. We’re also looking forward to a time in the not so distant future when the weather finally “goes out like a lamb”, whether that’s in March, April, May, or June.
UNRAVELING THE RELATIONSHIP BETWEEN THE FED FUNDS RATE & MORTGAGE RATES
The intricate dance between the Federal Reserve’s federal funds rate and mortgage rates is a subject that often perplexes consumers and investors alike. While the two are undoubtedly interconnected, it is crucial to understand that the fed funds rate and mortgage rates are distinct entities with different controlling mechanisms.
The fed funds rate is the interest rate at which banks lend money to each other. Controlled by the Federal Reserve, this rate serves as a tool for the central bank to manage the overall health of the economy. By adjusting the fed funds rate the Fed influences borrowing costs which in turn affect inflation and employment.
Mortgage rates, on the other hand, are market rates. They are determined by the yields on Mortgage Backed Securities (MBS). MBS are bonds that are traded just like treasury bonds. The yields fluctuate with supply and demand for MBS. Perhaps the single most influential factor in the demand for MBS is inflation. Higher inflation erodes the fixed rate of return that MBS offer. As inflation increases, demand falls, therefore yields must increase to attract investors. As MBS yields increase, mortgage rates increase. Other factors such as geopolitical events, domestic economic reports and the direction of the stock market also effect demand for and ultimately the direction of MBS yields.
The fed funds rate and mortgage rates often move in the same direction, but not always. If the Fed sees that inflation is too hot, they will raise the fed funds rate. The mortgage market will see the same concerning inflation reports as the fed and MBS yields will often rise accordingly. However, if market sentiment believes a fed funds hike is enough to control inflation, demand for MBS may increase pushing yields - and mortgage rates – lower.
Bottom line, the relationship between the fed funds rate and market rates is multifaceted. While the fed funds rate serves as a tool for the Federal Reserve to steer the economy, mortgage rates are influenced by a combination of market expectations, inflation concerns, global factors and investor behavior. Understanding these dynamics can give investors and consumers insight to navigate the ever-changing landscape of interest rates.
INTERIOR DESIGN INSIGHTS - TIMELESS VERSUS TREND
Move over the green hues of 2023, Pantone has declared “Peach Fuzz” as the color of 2024. Home trends are like fashion for homeowners, there are those of us who emulate the latest fads in our pads, and those of us who prefer an aesthetic to stand to the test of time. The Group asked a handful of local interior designers in Steamboat Springs to share their tips on what’s hot for 2024 versus what counts as timeless style.
TREND
- Bold pops of color on walls and furnishings. Murals and statement wallpaper, especially those made from innovative materials and natural fibers.
- Customized secondary spaces such as wet bars or a butler’s pantry. These are areas designed for either functionality and storage for kitchen appliances or showcasing ornate dish & glassware.
- Sculptural lighting to elevate a space with eye-catching fixtures that blend practicality with art.
- Technology is taking a backseat with old school light switches in demand as people are reverting from blue light to more ambient living.
- Metals in chrome, steel & aluminum for furniture finishes to faucets. The less shiny the better.
TIMELESS
- Neutral hues of soft whites, beige and muted greys for walls paired with simple furnishings, to maintain a minimalist aesthetic.
- Earthy materials including warm tone timbers, marble, stone, and leather that combine durability and simplicity.
- Quality furnishings designed with clean lines and covered with hard-wearing fabrics. Consider statement pieces such as a Chesterfield sofa or Eames chairs.
- Mix old and new to create a sense of timelessness. Pair classic furniture with an antique rug and a piece of modern artwork.
- Crown molding & built-in shelving add traditional detailing & afford an overall polished look.
Quiet luxury is the overarching buzz word among designers for 2024, and it’s likely to last the test of time.
LOCAL STATE PARKS MAKE WINTER FUN AND ACCESSIBLE FOR ALL
Accessing our local state parks has never been easier or more affordable. A pass discount and the opportunity to experience a swath of winter activities thanks to free equipment use are all available at Yampa River State Park, Stagecoach Lake State Park and Steamboat/Pearl Lake State Parks.
Colorado residents can now get a $29 Keep Colorado Wild Pass (access to all Colorado state parks) when registering a car, motorcycle, recreation vehicle or light truck through the Division of Motor Vehicles (DMV). The $29 pass is included in your registration total unless you choose to opt out and offers a 60% reduction to the regularly priced $80 pass.
Yampa River State Park
All winter the park maintains a groomed trail which is approximately 1.5 miles and can be used for classic skiing, skate skiing, as well as hiking and snowshoeing. They maintain an 80’ x 40’ ice skating rink, located behind the Camper Services Building. Free loaner gear includes ice skates, snowshoes, cross-country skis, hockey goals, hockey pucks, and a fat-tire bike. The park office shares ice rink and grooming updates by calling 970-276-2061.
Stagecoach State Park
Stagecoach boasts ice fishing, cross-country skiing, snowshoeing and fat tire biking opportunities. Snowmobiling is permitted only on the reservoir surface to access ice fishing, when traveling to and from vehicles and trailers.
The free loaner program includes lake and ice fishing rods/ tackle, hand augers, snowshoes, GPS units and fat tire bikes. All equipment is available on a first serve basis and donations are highly encouraged.
For up-to-date ice conditions, contact the park at 970-736-2436.
Steamboat Lake State Park
Nordic and snowshoe trails are marked with blue poles that wind through forested and open countryside, groomed by the Steamboat Lake Snow Club, a non-profit group.
Snowmobilers have access to over 145 miles of groomed trails designated for motorized use, identified with orange poles.
Ice fishing is a huge attraction at the park. Lures and bait are permissible with no size limits on the daily allowance of four fish.
For local conditions call the park office at 970-879-3922.
STEAMBOAT SKI RESORT OPENS NEW EXPERT TERRAIN AND URGES USERS TO KNOW THE SKIER RESPONSIBILITY CODE
Did you know Steamboat Ski Resort became the second largest ski resort in Colorado this year with the addition of over 650 acres of advanced/expert terrain? The opening of Mahogany Ridge and Fish Creek Canyon is part of a multi-year, multi-million-dollar investment campaign underway at the resort.
Mahogany Ridge is reached through gates along Middle Rib and is considered mostly advanced (Black Diamond). Fish Creek Canyon is accessible via gates along Edge of the World and is deemed extreme skiing (Double Black Expert). Natural hazards including cliffs and rocks, along with the degree of the slope necessitate technical and riding ability. The use of backcountry safety gear such as probes, shovels and beacons are advised when using these areas. Conditions will dictate whether this section will be open or closed at any given time, as safety will constantly remain the priority.
KEEPING SAFE ON THE MOUNTAIN
In 1962, The National Ski Areas Association (NSAA), developed the Skier Responsibility Code, being amended over subsequent years to include snowboarders and bikers. In a bid to keep all users safe, the NSAA urges everyone to do their bit and know the code.
Skier Responsibility Code
- Always stay in control. You must be able to stop or avoid people or objects.
- People ahead or downhill of you have the right-of-way. You must avoid them.
- Stop only where you are visible from above and do not restrict traffic.
- Look uphill and avoid others before starting downhill or entering a trail.
- You must prevent runaway equipment.
- Read and obey all signs, warnings, and hazard markings.
- Keep off closed trails and out of closed areas.
- You must know how and be able to load, ride and unload lifts safely. If you need assistance, ask the lift attendant.
- Do not use lifts or terrain when impaired by alcohol or drugs.
- If you are involved in a collision or incident, share your contact information with each other and a ski area employee.