La Veta – Cuchara Valley Blog

Another nice Cuchara property has gone Under Contract.  The River’s Edge operated by Mike Moore as a B & B is set to Close in June.  Congrats. to the Bachman Team again.

This week we saw a slight increase in interest rate for new fixed-rate mortgages. And why is that?  Well it’s because the Gov’t. Bond market was down slightly.  Which means bond holders are now requiring a slightly greater interest return.  Many mortgages are tied to the Treasury Bond rate so mortgage rates increased slightly as well. 

So what are the interest rate signals to always be on the lookout for? 

1.  Any change in Fed. Discount Rate (the rate banks pay to borrow short-term from the government). 

2. Any change in Banks Prime Rate (the best rate offered by banks for short-term loans to prime borrowers).

3. Any change in the Bond Market (a drop in Treasury Bill market values results in an increase in new Bond, and new mortgage, interest rates).

Long-term mortgages are still running in the 5% range which is historically viewed as a great rate.  Jumbo mortgages (those over $417,000) should still be expected to run about 6% (one percent higher than the conforming loans under that $417,000 level). Consumer confidence, overall economy, government budget deficit and inflation all effect the interest rate outcome in one way or another.  

The 138 acre Rio del Oso is now Under Contract.  This great property borders Grandote Golf on the South.  A fabulous property at a fabulous price.

Not Forgotten

Mortgage Rates Continue to Fall
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.

The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.

Source: Investor’s Business Daily (05/22/09)

First bear sighting of the summer.  This morning as I was heading into town, I caught a bit of movement in the horse pasture.  Bears don’t have great vision and this one was getting pretty close before it spotted me. Then the race was on, for cover in the woodpile.

Bachman Assoc. has been designated Exclusive Marketing Broker for a new development south of Cuchara.  River Run at Spanish Peaks is situated across from the Bear Lake/Blue Lake turnoff on Hwy. 12 in the old Spanish Peaks RV Campground.  It consists of  33 large homesite lots on Cuchara water and sewer system.  A good number of the lots will have river frontage too.  Steve Perkins is leading the effort as designated Bachman broker for the new project.  

I have lately become more aware than ever of the inconsistency and lack of uniformity in Appraisals.  The appraisers have dodged the criticism of regulators and the public, when in fact they may have contributed in part to the inflated housing bubble. And now, they are likely contributing to the pricing down-slide too. 

I have recently had three appraisals on three similar homes in the area. Each appraisal had three more comparables.  That provided me with a current look at 12 similar homes and I was shocked at the errors, subjective variables, opinions and conclusions they arrived at.  Two of the Appraisers were from outside of our immediate market area and had little clue regarding our unique market.  And now, your new Appraiser may be assigned by an Appraisal Management Company.  Yikes.

Last week I took the office brokers up to Echo Canyon Ranch for a preview tour.  We got real adventurous and went above the Lodge to the upper reaches of the fabulous Devil’s Stairstep dike wall.  A breathtaking view.

 Remember the good ‘ole days when a buck really meant something? Well, vacationers can find it all again riding across Colorado’s San Luis Valley on the Rio Grande Scenic Railroad.

Kicking off the 2009 season over Memorial Day Weekend, May 23 – 25, the train is offering a special daily ticket price that harkens back to 1878, the year the train’s route to La Veta, Colo. was first established.

Throughout opening weekend, roundtrip tickets are just $18.78 per person.  Passengers can board the train in either La Veta or Alamosa.  The $18.78 ticket price is good for adults, seniors or children and is available on a first-come, first-served basis. Other restrictions do apply.
To purchase tickets, visit www.riograndescenicrailroad.com or call 877-726-RAIL.