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October 17, 2013
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Home loan payoffs in Colorado fall during third quarter as mortgage rates climb

While home loan payoffs were up compared to the same time last year, they fell from the previous two quarters this year while mortgage rates rose, according to numbers released today from the Colorado Division of Housing.

Weld County recorded one of the state’s largest number of deed releases.

The number of home loans paid off in Colorado was up 13.9 percent from the third quarter of 2012. Public trustees in Colorado released a total of 89,372 deeds of trust during the third quarter of 2013 ­— one of the highest totals recorded in recent years — but which also reflected two quarters in a row of declines in activity in the face of rising mortgage rates, according to a news release.

“We’re now starting to see the effects of rising interest rates on release activity,” said Ryan McMaken, an economist with the Colorado Division of Housing, in the release. “While there’s a lot of demand for housing out there, and the numbers are still up compared to last year, these numbers show that the growth has started to taper a little as loans become more expensive.”  

According to the release, a deed of trust is released when a real estate loan is paid off, whether through refinance, sale of property, or because the owner has made the final payment.

Increases in release activity occur as refinance and home-sale activity increases, and rising release totals typically indicate increases in the demand for home loans and real estate, the release stated.

Release activity fell from the second quarter of 2013 to the third quarter of 2013, dropping 5.9 percent, the release stated. There were 94,937 deeds released during the second quarter of this year.

Trends in release activity were not uniform across the state. Although 20 of the 21 counties reported increases in release activity from the third quarter of 2012, rates of increase varied substantially. The largest increases were reported in Adams and Weld counties, where release activity increased 43.5 percent and 42.3 percent, respectively. The smallest increases were found in El Paso and Larimer counties, where activity increased 2.7 percent and 4.1 percent, respectively. The only county to report a year-over-year decline in release activity was Summit County, the release stated.

The Colorado Division of Housing collects these numbers quarterly. This report tracks releases of deeds of trust as reported by public trustees in Colorado. The report includes 21 counties that are chosen based on population size and to ensure that as many regions of the state as possible are represented.

More than 90 percent of all occupied households in Colorado are within the 21 counties chosen, according to the release.

The full report is available on the Division of Housing blog, www.divisionofhousing.com.


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My Windsor Now Updated Oct 17, 2013 12:58AM Published Oct 19, 2013 09:08PM Copyright 2013 My Windsor Now. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.