'30-Year mortgage rates fall below 4% for the first time'

For the first time ever, 30-year mortgage rates fall below 4%.  Not to be confused with 15year fixed-rates which hit a 50 year low of 3.26% a few weeks ago, the 30-year mortgages dropped below 4% for the first time in history.  The interest rate loan fell to 3.94% this week, the lowest rate since Freddie Mac began tracking it.

These record low mortgage rates can result in considerable savings for homeowners.  To show you the savings, take the 30-year interest rate from a few months ago, 4.6%, the difference between the 4.6% and the new 3.94% would decrease your monthly payment by $40 for every $100,000 borrowed.  Total your payments over the life of the loan and you would save almost $14,000 for every $100,000 borrowed. 

These drastic savings are why NOW is the most affordable homes have ever been.  If you look at it this way, for every 1% drop in interest rates, it will decrease your monthly payment by almost 10%.  Average that 10% drop over 30 years and that's a substantial savings.  Take the example above.  If you bought a home for $300,000, you would most likely put $50,000 or more down on the house, leaving a $250,000 mortgage.  If you could like in todays rate over the previous 4.6% your savings in payment over the 30 year life of your mortgage would total nearly $35,000.


If you are a homeowner or have been thinking of buying a home, and have questions about interest rates and mortgages, send me an email or give me a call.

Matt Ullrich
303.941.2452.mobile
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder, INC

'Green Living: Saving Energy This Season'

Fall weather is upon us and we find ourselves switching between the heater and the AC in the same day, driving up the costs of our utility bills.  Think green this fall and winter, save the earth and save your money.  Winter heating costs have risen in the last few years making it more enticing to go green and be energy efficient this year. 

You may all ready be thinking about going green to save some money, but how do I do get there?  Well let me tell you.  The first idea is to shop around electric providers.  Compare the rate per kwh and see if you could save money by switching companies.  The second idea if you have some money to spend is to upgrade your heating source.  Yes, there is a large upfront cost, but for most upgrades you will see the return on your investment in a few short years. Upgrades could be things around the home like installing energy efficient windows or upgrading to an energy efficient water heater.  You may even receive a tax credit for installing these upgrades.

Don't have the money to upgrade, don't sweat it.  There are easy tricks that are cheap to save some money on your bill.  On a cool night, walk through your house and find if there are and drafts coming from the windows, doors, or attic.  Then take a trip to your favorite local hardware store and pick up some supplies for a quick do it yourself fix.  You'll like yourself in January. 
You know how cold it gets during the winter, so while the days are still reaching the high 80's, look into fixing up some things around the home.  It will help keep some cash in your wallet.

Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder, INC

Funny real estate news: 'Having trouble selling your home right now? Make it more enticing'

A homeowner in Glenview, Ill is having problems getting her house to sell, so to sweeten the deal she bought $1,000 worth of booze to entice prospective buyers to take a second look at the home and emphasize the nearby nightlife of the town.  Full Story here. 

My Opinion: This certainly is an interesting incentive to make buyers think twice.  But there are a lot of homes on the market so how do you make yours more noticeable?  The first and most important rule is to have your home prices right.  That does not mean what the homeowner thinks it is worth, but what the market is saying people will pay for it.  Especially in this market when home values are hurting, prospective buyers are looking for VALUE in a home, which comes to my second point.  The second most important rule is if you are serious about selling your home, it needs to be presentable.  I'm not saying it needs to be staged but it will give you a huge advantage over the home down the street.  In today's market, especially, homebuyers are looking for that value and are looking for a home that they feel comfortable in and are ready to move into.  Lets say there are two homes on the market, both are priced correctly but home A is clean and staged, and B has 3 children and the house is a wreck...which home will sell?  -Getting back to the homeowner in Glenview, there are a lot of ways to make your home more vibrant to buyers, the $1,000 of liquor is a great idea.  Think of similar incentives to help your home be worth its value!


Matt Ullrich
303.415.2251.office
303.941.2452.mobile
ullrich@boulderco.com
RE/MAX of Boulder

'Increased Lending, Short Sales Necessary to Reduce High REO Inventories'

This has been a big question around the real estate world, what do we do with all of the real estate owned (REO) properties held by the government?  i.e. foreclosures.  After crunching the numbers and looking at the economics of the situation the solution is to continue to lend money and approve short sales.  (short sales are homes that are owned or in the process of being owned by the government/banks, they sell the home below market value to cover losses and get someone who can afford the home into the property).    The reasons behind continuing to loan and approve short sales are the negative affects of foreclosures.  When homes are foreclosed it is not just the homeowner that is hurt, but the entire community, the housing market, and the nation's economy.  By keeping the homes off the market in occupied the economy will have a better chance of improving.



Matt Ullrich
303.415.2251.office
303.941.2452.mobile
ullrich@boulderco.com
RE/MAX of Boulder

'A New Threat to Home Prices'

CNNMoney reports there is a new threat to home prices.  The threat is coming from a culmination of all financial issues facing Washington.  Between the growing national debt, the harrowing financial markets, and the weaning economic market, signs point to growing threat against home prices.  The issue: home mortgages will feel pressure on prices in high-end markets.  New loan limits are coming into play and these limits will mostly affect high-end markets and is said to affect 8% of the total U.S. housing market. 

You may be thinking, this will not affect me, this is only about high-end homes, wrong! If expensive homes stop selling, then prices for the houses under them will feel the pressure too.  As this issue will fall from high-end to low-end there is threat to the housing market.  Experts believe that President Obama will propose a major housing-related stimulus in the coming weeks as part of a broader economic plan.  May it be cutting conforming loans or creating more hurdles for 'jumbo' loans.

*related article here, CNNMONEY.com

Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder, INC

'The Way Appraisals are Sinking Real Estate Deals'

If you have sold a house recently in a depressed market than you are certainly aware of the current issue of appraisals.  In a down market home values drop and people sell their home below market value, appraisals are supposed to show/prove the worth/value of your home but if the homes around you are selling below market, this could mean trouble for you.  It is easy logic, but in order for an appraisal to take place someone comes out and inspects your home then, here's the kicker, they compare it to homes in the area that have recently sold that are similar to your home (comparables).  The problem is these comparables have been selling below market value in order to get the sale done.  The consequence is that your home is now taking a beating because the 'comparables', because they were sold below market value, now quality by association, your home will be appraised at a lower value.

What is going on here is a never ending cycle of bringing down home values.  The reason this keeps happening is before an offer is made a buyer gets an appraisal on the home and the appraisal comes in at $500,000 but the homeowner knows it is actually valued at $600,000.  The buyer knows that market says it is only worth $500,000 and will not make an offer higher than the appraisal.  This starts the cycle.  Now that the home dropped in value by $100,000, the next home will be brought down in value, and so on and so forth.  Currently there is no end to the cycle, the only way I see this ending is if buyers start paying over the appraised value or there is a second regulation in place to 'appraise' homes without bringing down the home values.

*for a similar article visit INMAN.com


Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

'Mortgage Applications up 6.3% Last Week'

Last week mortgage applications rose 6.3% as many homeowners filed purchase applications or refinanced.  This rise in mortgage applications and be traced back to the record-low interest rates today.  With such low rates people are refinancing and saving big money.

The interest rates for a 30-yr fixed mortgage dropped from 4.23% to 4.17% and the average rate for a 15-yr fixed mortgage dropped from 3.41% to 3.4%.


Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

RE news: '11 Fastest-Moving Real Estate Markets'

AOL Real Estate just released the 11 Fastest-moving Real Estate Markets.  Two Colorado cities made the list. Follow this link to see who made the list...


Slow, Tired, Gloomy day in Boulder. At least its already Wednesday.


Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

Boulder News: 'Ball Aerospace wins $36 Million Job'

BCBR.com reported Ball Aerospace and Technologies have won a $36million contract for a missile launch program.

'Boulder-based Ball Aerospace will create the Moire Program, which will include optics and geosynchronous imaging that can help detect missile launches and track them, according to a press statement. The project will also include real-time video.
Of the work, 73.2 percent of the project will be done from Ball Aerospace's Broomfield location, according to the press statement. Other work will be done in Goleta, California, 17.2 percent; Livermore, California, 7.2 percent; and Huntsville, Alabama, 2.4 percent.'-Beth Potter

Ball Aerospace revenue has been growing rapidly over the last year citing a near 15% growth from last year.  An increase from $18.6million to $21.7 million, second quarter numbers.  The company has also finished their 160,000sqft expansion of their manufacturing center and started expanding their satellite manufacturing facility in Boulder.

*read the full article at BCBR.com

Matt Ullrich
303.941.2452.cell
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder

News: 'Time for a new 'New Deal''

This is just a great article about the current 'recession' and an interesting take with economic facts of today.  Its a good short read from Inman Real Estate News.  I hope you read it.  INMAN NEWS


Matt Ullrich
303.941.2452
ullrich@boulderco.com
RE/MAX of Boulder, INC

Boulder RE News: 'Boulder Home Prices Increase'

From the BCBR.com:  Boulder home prices have risen 4.1% in July, according to CoreLogic July Home Price Index.  Nationally prices jumped shot up in July, but at a lower rate averaging only 0.8%, and down 5.2% from July 2010.

Full story here


Matt Ullrich
303.941.2452
ullrich@bouldeco.com
RE/MAX of Boulder, INC

RE NEWS: 'Real Estate Prices Up, but Not For Long'

Inman news, reports that home prices have risen for the fourth straight month in July, according to the latest report from loan data aggregator and analytics firm CoreLogic.  This is good news, but experts have been weighing in that this is only a seasonal spike and come fall, we will see home prices dip once again.

This is nothing new, it is true that home prices tend to fluctuate during the seasons and this year is no different.  On a national average home values and average home sales price have risen significantly this summer compared to last summer, showing signs of market improvement.  Boulder, in particular has seen similar growth in that average home sales prices have gone up this summer over the 2010 summer.  However, the number of homes on the market continue to fall from previous years.  We have seen a trend that since 2006 the number of listings per month have followed the same declining trend year after year.

My thoughts:  I am optimistic and foresee this next spring being a huge turnaround point for the market.  I think that the economy will start turning around, some new government programs will be set up, unemployment will do down, causing people to be less afraid of the market and realized their home values will not magically jump back up to their unrealistic values from 2007.  These are the kinds of things that need to happen to turn the economy around.

read the entire article here


Tell me your thoughts?

Matt Ullrich
303.941.2452
ullrich@boulderco.com

NEWS: 'The Mortgage Fix That Can Save the Economy'

I stumbled on an interesting article today about a new type of loan modification program that has potential to save the economy.  Past loan modifications have only left us worse of and now banks are suing banks and the government is handing out money to corporations and now the people are standing up and fighting back, and with a brilliant sollution at that.

The idea is for a new loan program that instead of the government to lend out millions of dollars to banks, the banks will just reduce the amount of principal on loans.  The statistics are as follows:

"If lenders would reduce all underwater mortgages to their current market value, the nation's banks could pump $71 billion per year into the economy, create more than 1 million jobs annually and save families up to $6,500 per year on mortgage payments, according to The New Bottom Line, a collaborative of 1,000 faith-based and community organizations who want Wall Street held accountable for the mess it created."  -Ann Brenoff, AOLreal estate

The idea behind this is that by reducing people's loan payment, it allows them to spend their money on other things such as groceries, clothes, etc.  This would cause a spike in consumer demand and businesses would be doing better and lead to prosperity and jobs.

Tell me what you think, could this idea help revive the economy?


Matt Ullrich
303.941.2452
ullrich@boulderco.com
RE/MAX of Boulder, INC

*for the full article on this issue follow this link

NEWS: 'HUD Extends Deadline for Unemployed Mortgage Assistance'

A program designed to help the unemployed with mortgage payments to recieve interest-free mortgage payments has been extended applications through September 15th.  The program is  part of the HUD's plan to help the unemployed keep up with their mortgage payments.  If applicants mee the critereia of the application the unemployed homeowner will be allowed to pay off their mortgage interest free. 

Colorado is taking part in the service, so if you would like to know how to apply for the program or would like to read the entire article, you can find it here at HousingWire.com


If you have any questions please feel free to email or call


Matt Ullrich
303.941.2452
ullrich@boulderco.com
RE/MAX of Boulder, INC

News: 'Home Affordability Remains High'

Home Affordability is near record highs (which is a good thing)  This rating means that American families are buying homes within their means.  The National Association of Home Builders said the affordability of homes sold in the second quarter for 2011 was 72.6%.  The national median income is $64,200.

At a time of high affordability it means prosperity, homeowners are purchasing within their limits and with the historic low interest families are getting great deals on homes and will be well financed to make affordable payments.  Unfortunately, the high level of affordability has not turned into more sales, actually, the national average of home sales dropped 3.5% in July from June sales.


*If you want to read the whole story check it out on RealtyTimes.com



Matt Ullrich
303.941.2452
ullrich@boulderco.com
RE/MAX of Boulder, INC

West End Tavern Presents 'Warren Miller Wednesdays'

Tonight is the kickoff party at the West End Tavern.  They are getting ready for ski season by watching vintage Warren Miller movies (every wednesday night at 8:30) and featuring food and drink speacials all night.


They are also giving away door prizes from FlyLow, Patron, Christy Sports, etc.  Start thinking snow and come down the West End Tavern tonight and have some fun.


*find this event online:  Warren Miller Wednesdays


Matt Ullrich
303.941.2452
ullrich@boulderco.com

Boulder Farmers' Market

Its that day of the week again (Wednesday if you weren't sure), come down to 13th street between Arapahoe and Canyon, from 4-8pm.

*The Boulder Farmers' Market is a locally grown farmers market with all the gourmet fixins of veggies, meats, fruits, flowers, chesses, and even wines!  Its a great atmosphere and fun for the entire family.  Support local!


Matt Ullrich
303.941.2452
ullrich@boulderco.com

RE NEWS: 'US housing faces another plaguing issue'

Through all the ups and downs the housing market has been going through, one key issue is holding the market back from growing.  The market IS seeing lots of improvement from a year ago but that is just from housing activity and not the facts.  The activity in the market has been growing over the past year but the facts of the matter is that, nationally, we are not improving when it comes to home appraisals and valuation.  Home appraisals are the staple to the healthy economy and because of the past few years of poor valuation we are seeing the effects today...Here is why:

Before the housing bust, home appraisals were getting out of hand, making higher valuations than the property was worth.  This market characteristic contributed heavily to the housing bust, homes were jumping up 10-16% a year, when on an average year home values are to appreciate between 2-4%.  This spike in home values lead to the crash and the appraised values plummeted and over the past 3 years we have seen large de-valuation of homes where they were highly valued.


The home appraisals of today are the effects of the high appraisals and the low home values of the past 3 years.  What is happening today is that home valuations are turning up lower than the REAL value of the home.  What I mean by REAL value of the home, is that a home may actually be worth $500,000 BUT because of the low appraisals of the past few years, the home that has a REAL value of $500,000 will end up being appraised at a lower value because the appraiser does not have comparable homes to compare it to.  And if the appraiser does have homes to appraise it to, they are at a lower price because of the housing bubble bust and the home values of comparables that have sold recently are at a lower price, therefore, causing the home with the REAL value of $500,000 to be valued below its worth at say $450,000.


Now you may be thinking, ok, its valued at $450,000 but im going to put it on the market for the $500,000 because that the real price it should be appraised at.  The problem here is 99 out of 100 times a buyer will want to see the most recent home appraisal and if the appraisal says the home is worth $450,000 and not $500,000 (as listed) the buyer will not be willing to go above $450,000 on the home and will end up buying a house down the street and leaving yours on the market for a long long time.


This is a very interesting subject to keep track of, because until home appraisers can figure out a better system to appraise homes, we may be stuck in this downward appraisal turmoil for a long time.  The appraisal system has the power to turn the housing market around and bring things back to normal.
    *for a similar story please follow this link:  U.S. housing faces extra drag- low appraisals


I'd love to hear some comments on home owners/ home buyers/ home sellers, and what you think about all of this.

Matt Ullrich
303.941.2452.cell
ullrich@boulderco.com
RE/MAX of Boulder, INC

'Boulder Firms Top Best Work Places List'

The past week Outside Magazine ranked Boulder, Colorado the best place to work in the U.S.  This was only the fourth year for the poll but it is slowly picking up.  Out of the 100-150 companies that have taken place in the poll, this years list was the most competitive.  The ranking are as follows:

"Boulder-based Natural Habitat Adventures, a travel operator, is No. 1 on the list. Boulder-based Environmental Management & Planning Solutions Inc., an environmental consulting firm is No. 2, and Boulder-based Sterling-Rice Group, an advertising and communications firm, is No. 3."bcbr.com

For the entire article from BCBR.com follow this link.


Matt Ullrich
303.941.2452.cell
303.4154.2251.office
RE/MAX of Boulder, INC

Real Estate News: ‘Market Turmoil Leads to Even Lower Mortgage Rates’

A very poor start for the stock market this morning, dropping 400 points already has caused mortgage rates to hit the 50 year low!  A 30-year fixed loan has dropped from 4.32% to 4.15%, while the average 15-year rate fell from 3.5% to 3.36%.

Now is an excellent time to re-finance if you have been thinking about it.  It would be hard to believe that rates could fall any lower.  If you have been thinking about refinancing, feel free to leave a comment or contact me…

*For the entire article read here



Matt Ullrich
303.941.2452.cell
303.415.2251.office
RE/MAX of Boulder, Realtor