HOW'S THE MARKET?
At The Group, we cherish every moment of summer…even though it only seems to last for the month of July. The Farmer’s Market is in full swing and the biking is epic. The high country snow has mostly melted, which allows hikers and wildflower seekers safe passage and dry boots. July is a glorious time to be in the Yampa Valley, and we hope you enjoy it as much as we do.
This time of year the Yampa River begins to recede from its peak and the only thing that is flooded is the market with new listings. As of June 26, 2024, Routt County has 225 active residential listings. That’s up substantially from 143 last month, and also up substantially from this time last year (155). The number of pending listings (86) has increased from this time last month (78), and this time last year (54). Closed listings county-wide in May, 2024 (46) slumped from the prior month of April (64), and were significantly lower compared to May of 2023 (51).
According to Freddie Mac, the national average for a 30-year fixed rate mortgage as of June 20, 2024 was 6.87%, which is .22% of a point lower than last month (7.09%). US News and World Reports note that many industry insiders expect rates to continue to gradually decline through 2024 and into 2025, but few expect the rate to dip below 6% during that time. So while rates are expected to continue to recede, they probably won’t change dramatically for the foreseeable future.
The Steamboat Pilot recently reported that, “Routt County Commissioners voted Tuesday to fund the conservation of roughly 8,000 acres of land located on the rolling foothill terrain along the Williams Fork Mountains.” This conservation easement is the combination of sections of the Camilletti and the Chance Ranches, and will provide additional wildlife and avian habitat that is welcomed in our region. Additionally, the Pilot notes, “Colorado’s collared wolves have traveled deeper into Eagle and Summit counties while somewhat withdrawing from parts of Routt and Grand counties, according to a map released by Colorado Parks and Wildlife Wednesday.” We’re not reading into this too deep, but it sounds like the wildlife of Routt will continue to have land in which to roam and will see a little less pressure from the newly reintroduced dominate predators.
We here at The Group want to thank you for being loyal clients. We hope you keep your boots dry during those river crossings, your bags full at the Farmer’s Market, and your eye’s alert to real estate opportunities. We are grateful for the opportunity to be your trusted advisers and are always just a phone call away.
UNDERSTANDING HOW MORTGAGE RATES ARE DETERMINED
Mortgage rates are a critical factor for anyone looking to finance a home. These rates can significantly affect the affordability of a home loan and, consequently, the overall housing market. While many factors play into the determination of mortgage rates, understanding the key elements can help potential borrowers make more informed decisions.
1. Economic Indicators and Market Conditions:
Mortgage rates are influenced by the broader economic environment. Key indicators such as inflation, employment, and gross domestic product (GDP) play a significant role. When the economy is strong, with rising inflation and employment, interest rates tend to increase as a measure to control inflation.
2. The Role of the Federal Reserve:
Although the Federal Reserve does not directly set mortgage rates, its policies have a considerable impact. The Fed's adjustments to the federal funds rate, which is the rate at which banks lend to each other overnight, influence overall interest rates in the economy.
3. Bond Market Dynamics:
Mortgage rates are closely tied to the yields on 10-year U.S. Treasury bonds. Investors view these bonds as a benchmark for long-term interest rates. When the yield on these bonds rises, mortgage rates typically rise as well. This is because both Treasuries and mortgages are long-term investments, and higher yields on Treasuries make them more attractive to investors, leading to higher mortgage rates to compete for investment dollars.
4. Lender Costs and Competition:
Lenders also play a significant role in determining mortgage rates. Their operating costs, profit margins, and the level of competition in the mortgage market can influence the rates they offer to consumers. In a highly competitive market, lenders might lower rates to attract more borrowers. Conversely, if lender costs rise or competition decreases, mortgage rates might increase.
5. Borrower-Specific Factors:
Individual borrower profiles significantly impact the mortgage rates offered. Key factors include:
- Credit Score: Higher credit scores generally lead to lower mortgage rates as they indicate a lower risk to the lender.
- Loan-to-Value Ratio (LTV): The ratio of the loan amount to the appraised value of the property affects rates. Lower LTV ratios often result in better rates.
- Loan Type and Term: Different types of mortgages (e.g., fixed-rate vs. adjustable-rate) and loan terms (e.g., 15-year vs. 30-year) come with different rates.
6. Global Economic Factors:
Global events and economic conditions can also impact mortgage rates. For instance, geopolitical instability, changes in foreign interest rates, and global economic growth can affect investor behavior and demand for U.S. securities, subsequently influencing mortgage rates.
Mortgage rates are determined by a complex interplay of economic indicators, Federal Reserve policies, bond market dynamics, lender-specific factors, and individual borrower profiles. Understanding these factors can help potential borrowers navigate the mortgage landscape more effectively.
CLOSINGLOCK BRINGS A SOLUTION TO COMBAT REAL ESTATE FRAUD
Buying a home is one of the biggest purchases most people make, involving large amounts of money. It can be a highly stressful time, especially when the market has lower inventory, and buyers need to move fast to secure a purchase.
In the past, real estate transactions were often done on paper, using checks or electronic wire transfers. Information for wire transfers with account details have primarily been shared through email, making it a target for scammers.
According to a report by CertifID, a leading fraud protection company, financial losses in real estate fraud amounted to $446 million in 2022 – double the number from 2020. Their findings show median consumer losses in real estate fraud schemes exceeded $70,000 per incident as a result of stolen buyer down payments and seller net proceeds. More than half of consumers (51%) were not adequately aware of the risks of real estate wire fraud before closing.
In their findings, CertifID warns that fraudsters have become increasingly skilled at leveraging public records, breaching broker and title agency systems, and posing as someone involved in a transaction to steal from unsuspecting consumers. They are able to impersonate real estate professionals by means of scam emails, texts, phone and social media. Encrypted emails can still be used for spoof messaging from scammers, and phone calls to verify wire transfers can be intercepted.
In fraud cases, the consumer is responsible for wire fraud as the funds were sent willingly, despite the fact it was done under deceptive means. Understanding the closing process and verifying requests for personal data and funds is key for buyers succumbing to fraud.
In 2017, an Austin-based couple started ClosingLock, a service for real estate professionals to securely share wire transfer details, and documents with residential, commercial buyers and lenders. The company’s intent is to stop wire transfer fraud.
ClosingLock is a web-based protective option for buyers and lenders to work with closing companies. ClosingLock starts with identity verification and secures transactions through 256-bit AES encryption and SOC 2, Type 2 compliant projection. Funds can be wired or sent as real time payment. Any documents requiring electronic signatures are tamperproof with a signing certificate issued after each document is completed.
Preventing real estate fraud requires attentiveness, education and trusted relationships. By understanding the forms of fraud, understanding warning signs and working only with licensed professionals, consumers can protect themselves from financial harm and uphold the integrity of the real estate market.
CELEBRATE SUMMER THE STEAMBOAT WAY
Summer is a time for festivals and celebrations in Routt County. Everything from our ranching heritage and ski history to music and the arts, gives us cause to parade and party.
Cowboy Roundup Days and July Fourth Party
Nothing brings the soul of Steamboat alive like Independence Day celebrations. Secure a spot on Lincoln Avenue to watch the parade. Expect to see everything from cowboys and longhorns to dance routines and one-skis. Head over after the last wagon has wound its way onwards to Howelsen Hill. A spectacle awaits as Olympians past, present and future defy gravity in a ski jumping contest. Join the Pioneer Days Block Party for afternoon ice cream and strawberries while listening to the brass band. Finish up the day at the Brent Romick Arena for the rodeo or the base of Steamboat Ski Resort for a free concert and 20-minute-long drone show spectacular.
Steamboat Springs Pro Rodeo Series
The Western spirit is alive and kicking every Friday and Saturday night until August 24, 2024. Professional cowboys and cowgirls compete each week in steer wrestling, team roping, barrel racing, bull riding, and saddle bronc riding at the Brent Romick Arena. Barbecue and music start at 6 p.m., with rodeo events beginning at 7.30 p.m.
Farmers Markets
Every Saturday until September 21, 2024, Yampa Street in downtown Steamboat hosts over 150 vendors. Tents filled with locally reared meats, fresh produce, foods, jewelry, arts and crafts provide a host of opportunities to shop local. There is plenty of entertainment with live music and food truck offerings to savor. The market is open 9 a.m. – 2 p.m.
Head to the Town of Hayden on Thursday evenings through August 8, 2024 (excluding July 4) for the Walnut Street Market. Local producers and artisans gather for the weekly market from 5 – 8 p.m.
Free Summer Concert Series
Beneath the iconic backdrop of Howelsen Hill, over 25,000 people will pack the park over five evenings through September during Steamboat Spring’s much-loved free summer concert series. Keepin’ it Free entered its 29th year, growing exponentially since it’s modest beginnings. Gates open at 5.30 p.m. and attendees of all ages filter in with lawn chairs and blankets to set up beneath the stars. For more details and the full concert line-up, go to. https://keepinitfree.com/
Art in the Park
Join artists from around the West as they display their creations on the lawn of West Lincoln Park. Food vendors, children’s activities and a plethora of live performances make this an ever-popular event for all ages. July 12-14, 2024.
Hayden Daze
Hometown fun is the name of the game at Hayden’s annual gathering with live music, beer garden, disc golf and cornhole tournaments, bounce houses, food trucks and parade. July 12 and 13, 2024
Balloon Rodeo
Watch the blue sky become a kaleidoscope of color as hot air balloons ascend over the Yampa Valley from Bald Eagle Lake in the early hours of the morning. Spectators are not allowed at the lake take off site. After dark, eight balloons will be illuminated at various locations throughout the weekend. July 26-28, 2024. For more information www.steamboatchamber.com
Routt County Fair
Established in 1914, the Routt County Fair at the Hayden Fair Grounds is a local staple to witness the ways of the West. Livestock auctions, 4H displays and contests, dressage, horse rides, mutton bustin, ATV rodeos, a demolition derby and lawn mower races are just a few of the events to lure the crowds. August 9 – 18, 2024.
HIKING IN THE 'BOAT
Wildflowers, alpine lakes, mountain vistas and pine forests are a smattering of scenes to reward hikers during summers in Routt County. From gentle walks to adrenaline inducers, there is something for everyone.
Slow and Steady
Stay close to town and walk the 7.5-mile paved Yampa River Core Trail. Picnic and rest stops abound. Stop to watch the action on the river, or wander through the six-acre Yampa River Botanic Park. Entry is free and donations are welcomed. Dogs are not allowed in the park.
Picture Perfect
Fish Creek Falls is one of the most photographed icons in Steamboat Springs. Opt for the quarter mile gravel trail to view the 283-foot waterfall or continue the six-mile hike to Upper Fish Creek Falls and Long Lake, going deep into Routt National Forest.
From Third Street and Lincoln Avenue, head north one block to Fish Creek Falls Road and continue until the road ends. $6 parking fee applies.
Hike an Icon
We named a mountain pass after it, a long-distance race and even a motel. The Rabbit Ears Peak is a hike to remember. Over 80 species of wildflowers carpet the way on the six-mile roundtrip hike up to the two spires of rock.
On U.S. 40, turn at the sign for Dumont Lake and drive approximately one mile until you reach a stone monument. Turn left on Forest Service Road 131 and look for trail marker 291 on the right.
Alpine Adventure
The Zirkel Circle is an eclectic blend of terrain including clear mountain lakes, aspen groves, meandering creeks and wide meadows. The 11-mile hike is no walk in the park with steep terrain in parts and minor water crossings.
From U.S. 40 take Routt County Road 129 for approximately 18 miles, past Clark, and a right onto Seedhouse Road. Drive almost 12 miles to Slavonia Trailhead. Take the left fork to remain on trail #1161 to Gilpin Lake. To complete the circle, continue to Gold Creek Lake, then back to the trailhead.
Thrill Seeker
Experience the hair-raising Devil’s Causeway, a jaw-dropping land bridge with precipitous drops on either side and incredible vista of the Flat Tops Wilderness Area. The trail winds pass alpine lakes and fields of wildflowers.
Head south from Steamboat Springs on Colorado 131 to Yampa. From there, follow County Road 7, then Forest Service Road 900 to trailhead at Stillwater Reservoir.