Falcon's Nest Subdivision Real Estate Report

Falcons Nest is located in the Northgate area and is in the District 20 School District.

Elementary School: Antelope Trails Elementary

Middle School: Challenger

High School: Pine Creek

Homes in Falcons Nest are:

Close to: Memorial Hospital

Close to: The Promenade Shops at Briargate

Zip Code: 80921

Great views of Pikes Peak

Close to: Pikes Peak Community College

Close to: Gleneagle Golf Course

Recap of Home sales and listings:

  • Homes sold in the past 6 months: 8
  • Average sales price: $266,681
  • Homes currently listed: 5
  • Average Listing Price: $265,340

This Colorado Springs Real Estate report contains information on Single Family homes in the Falcons Nest subdivision.

This information is taken from the Pikes Peak Realtor Services Corp and is deemed reliable but not guaranteed.

Market Today

Mortgage Bonds have continued to improve today by increasing up 47bp. Remember, when mortgage bonds increase rates decrease. Today was also one of those rare days when stocks finished higher as well, and we also saw the ongoing disconnect between the 10-yr Note and mortgage bonds continue as the 10-yr went into the red dropping 34bp. With not a lot of economic reports released today this reduction in interest rates is due to the government’s buying program for mortgage backed securities while the stock market benefited from news that a deal was struck between congressional leaders and the Bush Administration to offer the Big 3 automakers up to a $15 Billion bridge loan package in an effort to keep them out of bankruptcy. Rates are very low now and are dropping, now near best levels in 3 years. So if you are looking to purchase or refinance, get your loan together now.

Interest Rates at 4.5% ?????

Are interest rates really going down to 4.5%? Not actually, and maybe not. The Treasury Department is strongly considering a plan to intervene directly in the mortgage industry to dramatically force down rates and stimulate the moribund housing market, according to sources familiar with the proposal.
Under the initiative, the Treasury would offer to buy securities that finance newly issued loans for home purchases, according to the sources. But to participate in the government's program, mortgage lenders would have to set exceptionally low interest rates, for instance, no more than 4.5 percent for traditional, 30-year fixed-rate loans.
Borrowers would have to meet standards set by Fannie Mae, Freddie Mac or the Federal Housing Administrations that include documenting their income, sources said. Fannie and Freddie were put under government control in September. The Treasury plan would not apply to refinances.
See the full story at the Washington Post.

Week in Review Colorado Springs Properties

MONDAY, December 1st
The National Bureau of Economic Research announced today that the United States economy entered into recession in December 2007. The Bureau is recognized as the official source for dating the onset on recession in the U.S. Given payroll declines in every month so far this year, the recession comes as no surprise to many economists who believe it will last at least through the first half of 2009 and prove to be the worst downturn since WWII.
The ISM manufacturing index fell to 36.2% in November from a level of 38.9% in October. The downward spiral in the manufacturing sector index is consistent with severe contraction not only in manufacturing activity but in the economy as a whole. The outlook is for more of the same until later next year.
Construction spending fell 1.2% in October, more than an expected decline of 0.9%. However, the previous two months were upwardly revised to show a three-month annualized gain of 4.8%. Construction spending is 4.6% lower on the year, keeping in line with the downward trend that has been in place for over 2 years.
TUESDAY, December 2nd
Treasuries benefited from a flight-to-safety bid Tuesday amid corporate news that indicated worsening economic conditions and along with them, lower inflation. Also, anticipation that the Fed will begin purchasing Treasuries in substantial quantities as a less conventional policy response to unlock credit flows supported the bid. In late trading the 10-year note was up 19/32 to 109-13/32 to yield 2.67%.
WEDNESDAY, December 3rd
The MBA mortgage applications index surged 112.1% to 857.7% for the week ending November 28. The jump in applications was related to a half point decline in fixed mortgage rates. The purchase index was up 38.0% on the week but remains 22.2% below its year ago level. The refinance index soared over 200% last week and was up 37.7% from last year. It took awhile, but it appears as though mortgage rates finally have responded to the prolonged rally in the bond market.
Like the official announcement that we are indeed in a recession, the conclusion of the Fed's beige book that economic activity weakened across all Federal Reserve Banking Districts in late October and November comes as no surprise. The Fed's survey confirmed declines in manufacturing, construction, retail and auto sales, consumer spending, employment and residential and commercial real estate activity. Lending activity contracted as standards tightened. Inflation eased significantly because of falling energy prices. This broad based and dismal assessment of the economy suggests the Fed will continue to lower rates and use whatever means available to them to help promote moderate economic growth over time.
THURSDAY, December 4th
Long-term fixed mortgage rates tumbled almost a half-point after the Fed said last week that it would buy $500 billion in securities from Fannie Mae and Freddie Mac. The Fed will also buy another $100 billion in direct debt issued by the GSEs. 30-year fixed rate mortgages averaged 5.53% this week compared to 5.97% last week according to Freddie Mac's mortgage market survey. Economists at Freddie Mac noted that mortgage applications doubled in the past week with refinancing applications almost tripling in response to the steep rate decline in rates.
FRIDAY, December 5th
The economy shed 533,000 jobs in November, much worse than an expected decline of 325,000. Moreover, downward revisions in the previous two months resulted in net loss of 199,000 more jobs. The unemployment rate rose to 6.7% last month from 6.5% in October. Payroll declines are accelerating. Two-thirds of the 1.9 million jobs lost so far this year were in the last three months. The outlook remains grim. Expect the economy to remain mired in recession through most of 2009.

Stock Market Close for the Week
Index Latest A Week Ago Change
DJIA 8635.42 8829.04 -193.62 or -2.19%
NASDAQ 1509.31 1535.57 -26.26 or -1.71%

With downside risks to the economy mounting, any talk of additional government stimulus will grab the attention of market players, economists and analysts. Data flows are light and toward the end of the week. The Treasury will sell more debt in the coming week and supply concerns could boost yields somewhat from multi-decade lows.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 4.00 5.00 7.50
Fed Discount 1.25 2.25 5.00
Fed Funds 1.00 1.99 4.55
11th District COF 3.125 3.111 4.233
10-Year Note 2.70 3.98 3.97
30-Year Treasury Bond 3.13 4.68 4.43
30-Yr Fixed (FHLMC) 5.53 6.09 5.96
15-Yr Fixed (FHLMC) 5.33 5.65 5.65
1-Yr Adj (FHLMC) 5.02 5.06 5.46
6-Mo Libor (FNMA) 2.59125 2.91063 4.91000

Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Upward pressure on interest rates
Downward pressure on interest rates
No pressure to change interest rates
News worthy

Colorado Springs Properties: The Feds to the Rescue

Here they come to save the day!!!

Stocks traded much higher today on news that Citigroup will be the next big bank being bailed out by the US Government. The plan includes guaranteeing up to $306 Billion worth of bad mortgage-related loans and investments against losses and injecting another $20 billion in capital from the $700 Billion TARP bailout program. In return, the government gets $7 Billion in preferred shares paying an 8% dividend and stock warrants for 254 Million common shares at a strike price of $10.61. Citigroup must also modify their distressed mortgages to help borrowers avoid foreclosure and are barred from paying more than one cent per share in quarterly dividends for three years. The government is at least starting to learn from their earlier mistakes by placing restrictions on Citigroup’s executive compensation and bonuses. This is an enormous financial commitment by the US Government, but over time this deal could be a profitable one for taxpayers.

Also helping Stocks move higher today, was the talks of a larger than expected stimulus plan by the Obama administration, which could top $1 Trillion. There was another dismal Existing Home Sales report, which failed to provide any boost for bond prices as traders were expecting another bad report.

With all of the action in the stock market lately, surprisingly the bond market has had little reaction. Since November 5th it has just hovered right around the floor of support at the 200 day moving average. Today was not much different with it ending 25bp lower at the last few minutes of trading. Most lenders have been adjusting their rates by only .125% over the last week. So we will remain in a float pattern for now as I am still expecting rates to fall lower over the next couple of weeks. Stay tuned for more as the market changes.

FDIC plan could help 1.5 million keep homes:

WASHINGTON - Publicly breaking with the Bush administration's official stance, the Federal Deposit Insurance Corp. proposed Friday to use $24 billion in government funding to help 1.5 million American households avoid foreclosure. See full story.

Colorado Springs Properties: Economic Week In Review

Economic Highlights for the Week Ending November 21, 2008

MONDAY, November 17th
Disrupted credit flows continue to play havoc with the markets and economy. The Fed stands ready to take additional steps if necessary to relieve market strains and economic challenges. A half-point rate cut is widely expected at the next FOMC meeting, December 16, though its effectiveness is reduced by the Fed's measures to pump liquidity into the banking system.
TUESDAY, November 18th
The NAHB housing market index fell to a reading of 9 in November from a level of 14 in October. Needless to say, the single digit level of the index is an unprecedented low for homebuilder confidence. Exceptionally weak homebuilder sentiment related to due to a weak economy and tight credit suggest that housing market conditions have further to fall before reaching the nadir.
The NAR reported that the median existing home price fell 2.5% from Q2 to Q3 in the second largest quarterly decline since the downturn started. Median prices are 8.9% below their level one year ago and off 12.9% from their 2005 peak. CA, AZ, NV and FL again were the states reporting the largest price declines.
The producer price index fell 2.8% in October in its biggest monthly decline on record. The drop was led by a 12.8% decline in energy prices last month. Excluding food and energy prices, the core PPI was up 0.4% in October and 4.4% over the last year. Earlier price pressures, working through the pipeline, are pushing the core rate higher but they are dissipating fast which will lead to more moderate core PPI gains.
WEDNESDAY, November 19th
The consumer price index fell 1.0% in October after a flat September. The CPI is up 3.7% over the last year but down 4.4% in the last three months as a result of falling prices for energy, housing, transportation and apparel. Excluding food and energy, the core CPI declined 0.1% on the month but id up 2.2% on the year. Weakened economic conditions are exerting significant downward pressure on prices.
The MBA mortgage applications index fell 6.2% to 398.6% for the week ending November 14. Total mortgage applications are now 41.5% below their year ago level and continue to trend lower. A 12.6% decline in purchase applications caused the overall, weekly decline. Refinance applications actually increased 2.6% on a downtick in rates last week.
New residential construction starts fell again in October as weakened fundamentals continue to disrupt the housing market. Housing starts declined 4.5% last month to an annual rate of 791,000 units. This was the lowest level of new home construction starts since January 1991. Total housing starts have fallen 28.0% over the past year and are now 65.2% below their January 2006 peak.
THURSDAY, November 20th
Jobless claims jumped 27k to 542k for the week ending November 15. This is a new cyclical peak in unemployment claims and their highest level since July 1992. Large increases in jobless claims over the last two weeks indicate rapidly deteriorating labor market conditions with a faster pace of layoffs and extremely weak hiring.
Mortgage rates eased further for the third consecutive week amid signs of much lower inflation and weak economic activity. 30-year fixed rate mortgages averaged 6.04% this week compared to 6.14% last week according to Freddie Mac's mortgage market survey.
FRIDAY, November 21st

Stock Market Close for the Week
Index Latest A Week Ago Change
DJIA 8046.42 8497.31 -450.89 or -5.30%
NASDAQ 1384.35 1516.85 -132.50 or -8.73%

The holiday shortened week is packed with economic data and monthly Treasury auctions. New and existing home sales and personal income and outlays highlight. The markets will likely be more tuned into the announcement of Obama’s economic team, Monday and other financial and credit market news.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 4.00 5.00 7.50
Fed Discount 1.25 2.25 5.00
Fed Funds 1.00 1.96 4.51
11th District COF 2.769 3.280 4.383
10-Year Note 3.20 3.84 4.04
30-Year Treasury Bond 3.69 4.57 4.46
30-Yr Fixed (FHLMC) 6.04 5.98 6.20
15-Yr Fixed (FHLMC) 5.73 5.55 5.83
1-Yr Adj (FHLMC) 5.29 5.24 5.42
6-Mo Libor (FNMA) 3.12125 2.96500 4.80625

Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Colorado Springs Properties Home Prices: Now for the Good News

Colorado Springs: #6 on Smart Money Magazines 25 Cities Ready to Rebound!
When the headlines about the housing market are apocalyptic, the last thing a homeowner wants to do is sell. But a funny thing happened to Jeff and Jennifer Boyd when they put their three-bedroom house in Philadelphia’s Graduate Hospital district on the market this summer: They turned a profit. Just 45 days after the listing went up, a buyer snapped up the property for $555,000—$29,000 more than the Boyds paid in 2006. “We were pretty hesitant, knowing what the market is like,” says Jeff. “But a few weeks later, it was gone.”
Here’s a surefire way to start an argument: Suggest that the housing market has reached bottom. To be sure, the near-term outlook is still grim, and nobody is forecasting a rapid nationwide rebound. But there are signs that the overbuilding and speculative pricing that inflated the bubble are working their way through the system. In October 2005, near the peak of the boom, the median sales price for a U.S. home reached 7.3 times per capita income; by this May it had fallen to 5.7, in line with historical norms. Nationally, the rate of decline in sales is slowing, and in some regions sales numbers have actually perked up. “The indicators are starting to look better,” says Adam York, an economic analyst with Wachovia.
Why the disconnect? For starters, the national sales figures that get so much attention—and remain depressing—are brought down by boom-and-bust markets like Las Vegas, Miami and Phoenix. David Berson, chief economist with mortgage insurance firm The PMI Group, says that if hard-hit states like California, Arizona, Nevada and Florida are taken out of the statistical mix, the picture is much more promising. According to PMI’s “risk index,” which estimates the odds of prices falling in a given market, at least 65 percent of the nation’s 386 metro areas have less than a 10 percent chance of seeing lower prices two years from now. What’s more, the government’s sweeping bailout of the financial sector could boost the housing market by making borrowing easier for buyers.
We dug into those numbers as well as other forecasts and analysis to determine which markets are in the best shape for a rebound? We also talked with housing experts to learn which kinds of neighborhoods and suburbs are thriving. Our search led us to 25 metropolitan areas that look particularly promising, and there are more than a few surprises. Here, we profile seven of the best-looking markets; for the full list of 25, see November’s issue of SmartMoney magazine.
Denver was #9 on the list of 25 cities ready to rebound.

Information obtained from SmartMoney Magazine by Brad Reagan and Elizabeth O'Brien

Veterans Day

What a great day to remember our rich heritage.

Veterans Day is an annual American holiday honoring military veterans. Both a federal holiday and a state holiday in all states, it is usually observed on November 11. However, if it occurs on a Sunday then the following Monday is designated for holiday leave, and if it occurs Saturday then either Saturday or Friday may be so designated. It is also celebrated as Armistice Day or Remembrance Day in other parts of the world, falling on November 11, the anniversary of the signing of the Armistice that ended World War I. (Major hostilities of World War I were formally ended at the 11th hour of the 11th day of the 11th month of 1918 with the German signing of the Armistice.)
The holiday is commonly printed as Veteran's Day or Veterans' Day in calendars and advertisements. While these spellings are grammatically acceptable, the United States government has declared that the attributive (no apostrophe) rather than the possessive case is the official spelling.



Economic Highlights for the Week Ending November 7, 2008
MONDAY, November 3rd
The ISM manufacturing index fell to 38.9% in October from 43.5% in September. This is the lowest index level since September 1982! Apparently, manufacturing activity has fallen even further from already weak levels. The index reading suggests recession in both the sector and the economy. Credit flows to business will need to be restored before a turnaround can take place in manufacturing conditions.
Construction spending fell 0.3% in September less than an expected decline of 0.8%. Residential construction spending resumed its downward trek, tumbling 1.3% in September after gaining 1.9% in August in its first increase since March 2007. Though not as weak as expected in the last two months, construction spending will likely falter going forward due to severely weak economic conditions.
TUESDAY, November 4th
Motor vehicle sales plunged 15.5% in October to an annual rate of 10.6 million, the lowest level since February 1983! Expectations were for a much smaller decline to an annual pace of 12.0 million vehicles. Total vehicle sales have dropped 34.2% over the past year as a result of frozen credit markets, deteriorating economic conditions and accumulating job losses. With financing hard to secure and incomes and jobs uncertain, vehicle sales will remain exceptionally weak for the foreseeable future.
WEDNESDAY, November 5th
The ISM non-manufacturing index plunged to 44.4% in October from 50.2% in September. The larger than expected decline in the index indicates activity in the services, construction and government sectors of the economy contracted sharply last month, reflecting the intensifying turmoil in credit and financial markets.
The MBA mortgage applications index dropped 20.3% to 379.9% for the week ending October 31. This is the lowest level of the index since December 2000. The sharp decline in applications activity last week was probably related to the jump in mortgage interest rates. The purchase index tumbled 13.9% last week as the refinance index sank 27.8%. Total application volume is now 43.3% below its year ago level.
THURSDAY, November 6th
Productivity grew at a 1.1% rate in the third quarter, better than an expected 0.8% gain. Productivity remains quite solid given the economic downturn. Apparently, businesses are trimming workforces in response to weaker demand which keeps output levels aloft. Unit labor cost jumped 3.6% last quarter amid rising price pressures elsewhere. Weak labor market conditions are expected to reduce any wage pressures going forward.
Jobless claims fell 4k to 481k for the week ending November 1. The level of claims remains elevated indicating more job cuts and less hiring. Labor market conditions are clearly in recession as is the broader economy. It could get worse before it gets better with tomorrow's employment report showing more severe payroll losses in October than the 200k expected.
Mortgage rates declined this week as weaker economic data weighed on yields in the bond market. 30-year fixed rate mortgages averaged 6.20% this week compared to 6.46% last week according to Freddie Mac's mortgage market survey. Increased Fed rate cut expectations are also placing downward pressure on yields, thus mortgage rates.
FRIDAY, November 7th
Payroll employment declined by 240k in October compared to expected job losses of 200k. The outsized decline, the largest since 2001 provides more evidence of deepening weakness in the broader economy. The economy has shed 1.2 million jobs since the beginning of the year. Job declines were broad based as the unemployment rate rose to 6.5% from 6.1% in the prior month.

Stock Market Close for the Week
Index Latest A Week Ago Change
DJIA 8943.89 9325.01 -381.12 or -4.09%
NASDAQ 1647.40 1720.95 -73.55 or -4.27%

The holiday-shortened week presents all of the economic data in the last two days. Except for retail sales and import prices, most of the data is second tier and expected to show protracted weakness. The Treasury's $55 billion quarterly refunding will probably draw more attention, because these three auctions portend of many larger sized auctions to come as the government seeks to finance bailout and stimulus packages.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 4.00 5.00 7.50
Fed Discount 1.25 2.25 5.00
Fed Funds 1.00 1.94 4.33
11th District COF 2.769 3.280 4.383
10-Year Note 3.79 3.85 4.32
30-Year Treasury Bond 4.27 4.57 4.65
30-Yr Fixed (FHLMC) 6.20 6.05 6.24
15-Yr Fixed (FHLMC) 5.88 5.60 5.90
1-Yr Adj (FHLMC) 5.25 5.29 5.50
6-Mo Libor (FNMA) 3.12125 2.96500 4.80625

Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Upward pressure on interest rates
Downward pressure on interest rates
No pressure to change interest rates
News worthy

Home Market Report Pine Creek

Pine Creek Home Market Report
Pine Creek is located in the north section of Colorado Springs. Zip code 80920.
Pine Creek is in the District 20 school district.

Homes in Pine Creek are close to:

October Home Activity in Pine Creek

  • Homes Sold in October: 3
  • Average Listing Price: $450,000
  • Average Days on the Market: 154

Current Information as of 11/7/08:

  • Active Listings: 57
  • Under Contract and Pending: 9

This Pine Creek Real Estate report contains information from the following subareas: Pine Creek, Pine Creek Estates and Pine Creek West. It includes Single Family Homes, Patio Homes and Townhomes.

This information was obtained from the Pikes Peak Multiple Listing Service and is deemed reliable and not guaranteed.

Colorado Springs Properties - Economics

A full economic calendar in the coming week yields the latest data on the consumer, manufacturing, housing and third-quarter GDP. Midweek, the Fed will decide on monetary policy. Expectations are for an additional half-point rate cut after the emergency half-point easing earlier this month to help counter escalating economic weakness. The Treasury will also hold its regular monthly auctions of 2-year and 5-year notes in larger offering sizes than previously to help finance the bailout package and fund other lending facilities. Large amounts of new supply in the bond market typically lower prices and raise yields. Colorado Springs Properties are abundant! Click here to check out my website.

Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 4.50 5.25 7.75
Fed Discount 1.75 2.50 5.25
Fed Funds 1.50 2.25 4.73
11th District COF 2.693 3.560 4.359
10-Year Note 3.68 3.81 4.39
30-Year Treasury Bond 4.06 4.52 4.67
30-Yr Fixed (FHLMC) 6.04 6.03 6.33
15-Yr Fixed (FHLMC) 5.72 5.62 5.99
1-Yr Adj (FHLMC) 5.23 5.29 5.66
6-Mo Libor (FNMA) 3.98125 2.61438 5.13250

Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Colorado Springs Properties - New FHA Guidelines

FHA- New Guidelines Converting Existing Homes to Rentals- IMPORTANT READ!

Not wanting to be involved in financing "buy and bail" home purchases, the Federal Housing Administration will no longer count rental income when home buyers choose to vacate, rather than sell, their principal residence.

Home buyers seeking to rent out their existing home and buy another with an FHA-backed mortgage must now demonstrate they have sufficient income to pay both mortgages. The FHA won't allow lenders to count rental income for the home being vacated unless borrowers have a 25 percent equity stake or can prove they are relocating for employment and obtain a one-year lease on the home being vacated.

The new rules are intended to prevent the practice known as "buy and bail," where the buyer purchases a more affordable dwelling with the intention to cease making payments on the previous mortgage. See link for HUD’s mortgagee letter http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-25ml.doc

Because FHA will insure principal residences only, and not income properties, the property being vacated by definition could not have an FHA-insured mortgage (unless it falls under the exception ruling*). But FHA feels that if the property ended up in foreclosure, it might have an impact on the value of nearby homes with FHA-guaranteed mortgages as well as the industry as a whole. The new rules took effect Sept. 19 (we are given a four hour notice!), and are temporary pending a determination whether a permanent rule change is needed. The rules apply only to a principal residence being vacated in favor of another principal residence, and not to existing rental properties disclosed on the loan application and confirmed by tax returns (with at least a year of being reported on Schedule E).

*When can you have two FHA loans at the same time?
A buyer cannot have two FHA loans at the same time unless:

1) The second FHA loan is for a primary residence and the old home which has the current FHA financing is not in a "reasonable driving distance to the first one" from the new one. An example would be: First home with FHA financing is in New Mexico and they are being transferred here with their company. Since the first home with FHA financing is not in a "reasonable driving distance" from the next home, the buyer can obtain another FHA loan. Note that they would have to qualify for both payments or have a 12 -month lease agreement against the first one (The 12-month lease can only be used to offset the mortgage payment provided that there is 25% equity in the first one OR they are relocating for employment).

2) The second exception of when a buyer can have a second FHA mortgage has two parts (and both parts must be satisfied): A) Current home with FHA must have 25% equity into the home (as per an appraisal) AND (not OR) B) must be able to prove increase of family size (i.e., births of additional children) so that the current home does not now adequately fit the family needs. Note that they would have to qualify for both payments or have a 12 -month lease agreement against the first one.

3) And third exception of when a buyer can have a second FHA mortgage at the same time is if they are non-occupying co-signing for someone. If the parents already had an FHA loan on their current property and they are Non-Occupying co-signing, that is OK.

4) The forth exception would be if a husband and wife are on an FHA mortgage and they get a divorce. The divorce decree specifically awards the home to one spouse. This would release the other spouse (the one not awarded the original home) to obtain their own FHA financing on another home.

Obviously in any situation, if a buyer has FHA financing on their current home and it is sold, then that would release them to obtain an FHA loan again.

Colorado Springs Properties - Economy today

Recent data point to recession. Extremely light data flows in the week ahead will provide little to further the outlook. Pricing pressures and interest rates are expected to ease during the downturn. In my opinion, Colorado Springs is not feeling the turbulence as much as some other cities. Check out some of my great Colorado Real Estate buys at http://www.KathyStenberg.com.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 4.50% 5.25% 7.75%
Fed Discount 1.75 2.50 5.25
Fed Funds 1.50 2.34 4.74
11th District COF 2.693 3.560 4.359
10-Year Note 3.92 3.67 4.57
30-Year Treasury Bond 4.31 4.47 4.82
30-Yr Fixed (FHLMC) 6.46 5.88 6.40
15-Yr Fixed (FHLMC) 6.14 5.40 6.08
1-Yr Adj (FHLMC) 5.16 5.10 5.76
6-Mo Libor (FNMA) 3.98125 2.61438 5.13250

Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Colorado Springs Properties - Economy today

Well today was another day of huge swings for both the stock market and Mortgage Bonds. Mortgage Bonds tried to rally early in the session by moving 82bp higher from a lower open, but then swung 119bp the other way to resume its downward trend with a loss of 81bp. The bond market fought lower bond trading volumes and news of a global coordinated effort by the world’s major economic powers to guaranty inter-bank loans and allow governments to purchase stock in troubled banking firms.

This put investor concerns over the credit crunch more at ease while many Fed analysts feel the Fed will cut short-term interest rates by 25bp to 50bp at their next FOMC meeting at the end of October. This sentiment also pressured bonds lower as did news of S&P ratings downgrades on debt issuers. S&P downgraded 227 issuers affecting $1.8 trillion of rated debt in U.S. dollars and $1.3 trillion rated in Euros.

The day’s big news came from the Bush Administration including Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke, and FDIC Chairman Sheila Bair when they announced a plan to use $250 billion of the $700 billion appropriated in the financial rescue bailout bill recently passed by Congress. The government will begin by buying stock in nine of the largest banks including Bank of America, JPMorgan Chase, and Citigroup.

This is a very good idea and is an impressive effort by the government to stabilize the financial markets. As we have talked about, the over leveraged banking system is mostly due to accounting regulations. As losses are taken, it reduces (on paper) the net worth of institutions, which then see their ratio of loans to capital skyrocket. The only ways to de-leverage are 1) to sell off the loans – and in this market, that means at “fire sale” prices, which add to losses, exacerbate the problem, and that is why, in part, we are where we are. 2) To raise capital. But it is hard to do this in this market. So the Feds plan today says they will buy non-voting or preferred shares. This is a way to help banks raise capital. So far this has led to a favorable reaction among banks as evidenced by the drop in the LIBOR Rates.

After several days of losses, Mortgage Bonds are technically oversold and ripe for a bounce higher. With prices now crashing well below the 200-day Moving Average, the bond does have a lot of technical damage to repair in order for prices to improve much further. Hopefully you have locked in your interest rate if you are closing soon. On new transactions, or if you have time to wait, carefully float and see if Bonds can build back up. There are some great Colorado Springs properties for sale. It is still a great time to find a real estate bargain.

Colorado Springs Properties- Economics this week

A full economic calendar this week will take backseat to the ongoing financial market meltdown and the latest government interventions to get credit flowing and stem the losses. There are still great Real Estate deals in Colorado Springs.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 4.50 5.25 7.75
Fed Discount 1.75 2.50 5.25
Fed Funds 1.50 2.50 5.25
11th District COF 2.693 3.560 4.359
10-Year Note 3.88 3.54 4.67
30-Year Treasury Bond 4.13 4.34 4.88
30-Yr Fixed (FHLMC) 5.94 5.88 6.40
15-Yr Fixed (FHLMC) 5.63 5.42 6.06
1-Yr Adj (FHLMC) 5.15 5.18 5.73
6-Mo Libor (FNMA) 3.98125 2.61438 5.13250

Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco

Colorado Springs Properties - Ridgeview at Stetson Hills


Ridgeview at Stetson Hills is located on the east side of Colorado Springs off the Powers Corridor.
  • Homes sold in September: 17
  • Average sales price: $198,726
  • Current number of listings: 72
  • Listings price from: $135,900 - $364,900

Children attend Falcon School District 49

Ridgeview at Stetson Hills is a short drive to:

This Colorado Springs Property Report contains Single Family Homes and Townhomes.

This information is taken from the Pikes Peak Realtor Services Corp and is deemed reliable but not guaranteed.

Colorado Springs Properties - Where Home Prices Are Likely To Rise

This is from a Forbes article written by Matt Woolsey, 08.25.08

Believe it or not, in the future people will be buying and selling homes. Some of them will even make a profit.
It's not so crazy an idea. Consider Albuquerque, NM. The mid-sized Southwestern city has experienced housing price declines since a peak in the third quarter of 2007, job growth has been flat, and housing starts are expected to fade by 45% through the end of 2008. Nevertheless, it's a city that home builders and economists are bullish about for 2010 and beyond.

In Depth: Where Home Prices Are Likely To Rise
According to analysts at Moody's Economy.com, Albuquerque's job growth through 2012 is projected at an average annual rate of 1.6%, fueled in large part by its low costs and local business expansion. Housing starts in the city are expected to reverse course in 2009, growing by 26.6%, according to the National Association of Home Builders (NAHB). This means builders have high hopes for 2010 and 2011, when those homes will be completed and on the market.
It's the same story in several other cities: more tough times to come in the short term, but potential for a recovery and a rise in prices in the long term.
Behind The Numbers To determine where house prices are expected to rise next, Forbes.com looked at projections for housing starts from the NAHB and job-growth figures from Moody's Economy.com, for the 100 largest metro areas in the U.S. The estimates are based on the cost structures of business in the respective cities and the composition of the local economies. Housing start projections from the NAHB may seem like wishful thinking. Trade-association economists often view their own industry through rose-colored lenses. The National Association of Realtors (NAR), for example, has developed a reputation for its positive outlooks despite negative numbers.
But the NAHB data are filled with laggards, signifying some realistic thinking. Housing starts in Las Vegas are expected to drop by 32% in 2008 and actually get worse in 2009, falling by a further 43%. In overbuilt, highly leveraged Phoenix, starts are predicted to fall 50% this year and descend another 11% more in 2009.
Because houses take six months to two years to build, that means home builders aren't expecting profits in the Vegas or Phoenix market until past 2011.
"These are some of the most overbuilt markets," says Robert Denk, an economist at the NAHB. "There are some markets that got really out of hand and they're going to be in trouble for a couple years still." He cites Cape Coral, Fla., as the poster child of overbuilding exuberance. "They built 10 years of housing in two years."
The prognosis isn't as bad elsewhere.
Recovery In Obvious Places At this point, it's clear the subprime contagion won't be contained in the next year, based on the acceleration of home price drops and foreclosures nationwide. But when the bad vintages of loans finally come off the books, the cities where prices are expected to rebound are largely those with vibrant economies.
"The logic is pretty straightforward," says Mark Zandi, chief economist at Moody's Economy.com. "People will spend as much on housing as their income will allow them. House prices are very closely tied to household income over the long run when you look at business cycles."
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This means that recovery is likely in the cards for even the hardest-hit spots. Cities like Atlanta and Colorado Springs, Colo., may be reeling from high defaults and foreclosures, but from 2007 through 2012, their economies are expected to experience 2% and 1.6% average annual job growth. That means more in-migration and more money in the economy, factors that help businesses grow and profit--and put more money in residents' pockets.
As local economies grow bigger and more dynamic, land values increase because the value of what can be produced on that land increases. When land prices go up, home values go up.
Home prices moving up; it sort of makes one nostalgic.

Colorado Springs is #7 on the Forbes list.

7. Colorado Springs, Colo.

Housing starts 2008: -37.6%

Housing starts 2009 increase: 53.2%

Single-family increase: 49.6%

Multi-family increase: 81.8%

Job growth 2007: 0.9%

Average job growth 2007-2012: 1.6%

Colorado Springs - Economics

Stock Market Close for the Week
Index Latest A Week Ago Change
DJIA 10325.28 11143.13 -817.75 or -7.33%
NASDAQ 1947.39 2183.34 -235.95 or -10.8%

The economy has been deteriorating before our eyes amid efforts to pass bailout legislation. Now that the bailout bill has been approved, the economic data will come back into play as the next FOMC meeting approaches. Given the current state of economic affairs, a rate cut at the end of the month is very likely. It's a great time to buy real estate in Colorado Springs.
Key Interest Rates Latest 6 Mos Ago 1 Yr Ago
Prime Rate 5.00 5.25 7.75
Fed Discount 2.25 2.50 5.25
Fed Funds 2.00 2.23 4.72
11th District COF 2.693 3.560 4.359
10-Year Note 3.60 3.55 4.57
30-Year Treasury Bond 4.09 4.36 4.80
30-Yr Fixed (FHLMC) 6.10 5.88 6.37
15-Yr Fixed (FHLMC) 5.78 5.42 6.03
1-Yr Adj (FHLMC) 5.12 5.19 5.58
6-Mo Libor (FNMA) 3.98125 2.61438 5.13250

Sources: IBC' s Money Fund Report; Bank Rate Monitor; Federal Home Loan Bank of San Francisco