News
The number of mortgage loan payoffs in Colorado was down 6.4 percent during 2011 compared to 2010, but not in Summit County.
According to a recent report released by the Colorado Division of Housing, a total of 235,749 deeds of trust were released in 2011 across Colorado, a reduction from 2010's total of 251,861. Releases typically occur when a real estate loan is paid off through refinance, sale of property or because the owner has made the final payment on the loan. Activity declines as refinance and home-sale activity falls.
Summit County's payoffs rose from 4796 in 2010 to 5408 in 2011, an increase of 12.8 percent. Other areas that didn't see a decrease were Douglas, Jefferson, Morgan, Park and Teller counties.
All counties surveyed reported increases in activity from the third quarter to the fourth quarter of 2011.
“Real estate activity perked up a bit during the fourth quarter, which would reflect some very recent growth in employment and some mild increases in home prices,” said Ryan McMaken, spokesman for the Colorado Division of Housing. “But overall, the fourth quarter's activity wasn't enough to keep 2011 from being another flat year.”
According to the report, the number of deeds of trust released during 2011 was the smallest annual release total reported since the state began keeping release records in 2000. Release activity peaked during 2003 when there were 733,373 releases reported in the counties surveyed. The unusually large number of loan payoffs from 2002 through 2005 reflects a period of declining mortgage rates and increasing new home construction that led to a swift rise in home purchase activity and refinancing. From 2003 to 2011, however, loan payoffs fell 67 percent.
Summit County's lowest number of payoffs occurred in 2000, and the most in 2003.
“Ten years ago, even a small decline in the mortgage rate would have produced quite a bit of new refinance and sales activity,” McMaken said. “But since 2008, tighter lending standards and a drop in the number of eligible buyers has prevented a sizable surge in new activity in spite of record-low rates.”
According to a recent report released by the Colorado Division of Housing, a total of 235,749 deeds of trust were released in 2011 across Colorado, a reduction from 2010's total of 251,861. Releases typically occur when a real estate loan is paid off through refinance, sale of property or because the owner has made the final payment on the loan. Activity declines as refinance and home-sale activity falls.
Summit County's payoffs rose from 4796 in 2010 to 5408 in 2011, an increase of 12.8 percent. Other areas that didn't see a decrease were Douglas, Jefferson, Morgan, Park and Teller counties.
All counties surveyed reported increases in activity from the third quarter to the fourth quarter of 2011.
“Real estate activity perked up a bit during the fourth quarter, which would reflect some very recent growth in employment and some mild increases in home prices,” said Ryan McMaken, spokesman for the Colorado Division of Housing. “But overall, the fourth quarter's activity wasn't enough to keep 2011 from being another flat year.”
According to the report, the number of deeds of trust released during 2011 was the smallest annual release total reported since the state began keeping release records in 2000. Release activity peaked during 2003 when there were 733,373 releases reported in the counties surveyed. The unusually large number of loan payoffs from 2002 through 2005 reflects a period of declining mortgage rates and increasing new home construction that led to a swift rise in home purchase activity and refinancing. From 2003 to 2011, however, loan payoffs fell 67 percent.
Summit County's lowest number of payoffs occurred in 2000, and the most in 2003.
“Ten years ago, even a small decline in the mortgage rate would have produced quite a bit of new refinance and sales activity,” McMaken said. “But since 2008, tighter lending standards and a drop in the number of eligible buyers has prevented a sizable surge in new activity in spite of record-low rates.”
