Consumer Education

A recession is exactly what we need right now. And it's good for housing. So what am I talking about? The two in tenure treasury yield had a small 0.05 spread as March ended. This is on the verge of inverting, which is a high validity recession indicator of five of the last six recessions that were all proceeded by an inversion. However, today we also have incredibly strong labor market. The unemployment number just came out at 3.6%, which is a post-pandemic low. In fact, unemployment has only been lower than 3.6%, three times since 1950 non-farm payroll saw robust 431,000 jobs added, which is alongside 11.3 million job.
If you remember an inventory in 2018, when rates pushed above 5%, 1,827, new listings came on the market during March that's a 44% month of a month increase, but more than half of those new listings were scooped up as pendings increased by 1039 and closed homes increased by 941.
While more inventory might give buyers a little more breathing room, they are not giving up with more inventory. We have more sales. This additional inventory is partially due to seasonality. I mean, some of it is investors taking their winnings off the table and others are looking at this intense demand and talks of a bubble and wanting to play the timing game. I think as prices rise, high prices are a bit of a cure for high prices. The appreciation much like inflation will slow down, but talks of a bubble assume high prices themselves are the tipping point and they aren't homeownership, equity of 69.2%, a vacancy rate of 1.6% and a high birth rate. 30 to 33 years ago, all starve off the bubble talks 75,000 annual equity gain for an average Colorado. In addition to a 0.01% Colorado foreclosure rate, and a 1.9% 30 day rate tells me that struggling homeowners don't have to sell at a discount just at market,

Will the housing market crash in 2022? Here is your DMAR Real Estate Market Update. The real estate market is INTENSE right now, and news headlines are doing a very good job of scaring us into thinking that we are heading towards a housing bubble burst. But the truth is, there is NO BUBBLE.
Yes, interest rates and prices are rising, but the amount of equity and demand we are seeing DOES NOT constitute a bubble ready to burst. If anything, a little slow down in market activity will give supply a chance to catch up, giving homebuyers more options.
I encourage you to always take a look at the facts, and keep an open dialogue with yourself, your realtor and your lender on your affordability and expectations in the housing market.
Nicole Rueth, The Rueth Team of Fairway Independent Mortgage Corporation750 W Hampden Avenue, Suite 500, Englewood, CO 80110303-214-6393  www.TheRuethTeam.com
Connect on social media: Follow me on FB: https://www.facebook.com/theruethteam/ Twitter: https://twitter.com/nicolerueth Linkedin: https://www.linkedin.com/company/the-rueth-team-fairway-independent-mortgage/ YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw 

Your Debt to Income Ratio is a key metric of analysis lenders use when you submit a loan application. It gives us a good indication of how much you can afford in relation to the debts you currently hold. In the Denver Real Estate Market there is a LOT going on... little inventory, increasing rates AND increasing prices. So, how does that affect homebuyer affordability? Well, with all this activity, what you were approved for might not work anymore... and optimizing your DTI just became that much more important. In this episode, Nicole will walk you through what is part of your monthly debt and what are the exceptions. Listen at least once. Share this with your family and friends.
Tip: The car doesn't care about the house, but the house cares about the car. Make your purchases in the right order.
Tip: how do you calculate your debt-to-income ratio?
To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out.  For example, if you pay $1500 a month for your mortgage and another $100 a month for an auto loan and $400 a month for the rest of your debts, your monthly debt payments are $2,000. ($1500 + $100 + $400 = $2,000.) If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent. ($2,000 is 33% of $6,000.)
AnnualCreditReport.com - free to pull your own report.

Rising Home Prices, Increased Interest Rates - What Options do Home Buyers have in 2022?
Rates are going up and so are home prices.  Don't get caught (like the Fed) with your pants down. Strategies going into this previous weekend and week. It's changing fast!

In a hot seller's real estate market, buyers need an upper hand! I know it's frustrating seeing interest rates and home prices on the rise, but The Rueth Team has a TON of strategies in place to help buyer's offers stand out, grant seller security, and get everyone to the closing table on time and happy.
From TBD Underwriting, Fairway Cash Guarantee, up to $15,000 Earnest Money Guarantee, 8-10 Day Closings, AND MORE, we've got the stuff that will help you make homeownership a reality!
Listen to this 6-minute episode, "Gaining the Upper Hand to Be the Winning Offer", for quick tips.

Where are rates headed? It seems like right now mortgage rates and inflation are going hand in hand. The cost of everything is up, including housing, gas, food, etc. You see it, I see it and we are all feeling it.
No one could have predicted a pandemic and a war in a 2-year span, and the housing market is constantly responding. Interest rates are on the rise, inflation is hot and international conflicts are all taking their toll.
As real estate agents and professionals, it's important to recognize the changes in the marketplace so that we can better advise clients and be their number one supporter. 

What are mortgage points? Is it worth it to buy down your mortgage rate using mortgage points? How long will it take to earn your money back if you buy your rate down?
Mortgage points are essentially a way for you to buy down your market interest rate by paying more money upfront. This can help with cash flow and even help you afford more home and a bigger loan. While this sounds great, you shouldn't assume that buying down your rate using loan discount points is the best decision for your financial future.
You need to know what fits your immediate situation, and your near future plans, as well as longer-term investment plans. Just buying the rate down may not be the most logical.

Being a first-time homebuyer in the Denver Real Estate Market is no easy feat. You're feeling it, your real estate agent is feeling it and I AM TOO! But this is your sign to not give up! We are giving you OPTIONS to get on the path to homeownership with flexible loan solutions, down-payment assistance programs, and creativity in terms of location and type of home (AKA a duplex ;D). While the first home may not be the dream home, it's a stepping stone to getting there.
Some points to be aware of if you are considering a multi-unit plan:
First-time homebuyers - be aware if you are doing multiple-unit - know all the HOA, taxes, and insurance fees.
Having property managers for rental properties can really help you only put 3.5% down.
If you are thinking you can boost your qualifying by counting that roommate income, you can't use roommate income to qualify. Only rental income from a LEGAL unit qualifies. 
Having an auxillary dwelling unit, basement unit may help with your monthly income, but it cannot be used if it is a single family home. This is why a legal duplex is so much better. 
As always, if you have any questions, please don't hesitate to give my team a call!

Typically VA loans have their own acceptance problems because they are 100% loans. Rethink them and all of these options covered in this episode. VA, FHA, Jumbo and Jumbo LLC loans can give buyers OPTIONS to get into a home and start building equity; so that one day they can afford to get into their forever dream home. There are several loan options for buyers that may not have all of the ideal qualifications, money down or budget to compete in the Denver Real Estate Market. It's hard. We know that. But here is what you need to know about 4 Loan Programs that are lesser-known, but can open the door to homeownership. Let's get creative and talk about multi-units.
If any of these solutions spark your interest, or you have any other questions, please reach out to my team and me using the information below.
Nicole RuethThe Rueth Team of Fairway Independent Mortgage Corporation750 W Hampden Avenue, Suite 500 Englewood, CO 80110303-214-6393 www.TheRuethTeam.com
Connect on social media:
Follow me on FB: https://www.facebook.com/theruethteam/ Twitter: https://twitter.com/nicoleruetLinkedin: https://www.linkedin.com/company/the-rueth-team-fairway-independent-mortgage/ YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw 

How much over asking do I need to go? It's an intense market. Is it necessary to bid over the asking price right out of the gate in the Denver Real Estate Market? Market trends die out before home buyers can catch up. So, whether or not you go in swinging big, this episode may help you decide. You  may have to prepare yourself and ask the big question, "Can I have the last ask?"
Market trends die out before home buyers can catch up. So, whether or not you go in swinging big is really up to you! Communicate with your agent and ask:
How much over the asking price should you bid?
When will I break even?
Is that dollar amount over ask and the time to make it back worth it for you?
These are all questions you should ask yourself when deciding if bidding $100K over ask is reasonable given your specific situation.