We find ourselves in the middle of one of the greatest wealth transfer periods of all time. Those with wealth must decide whether they want to make transfers, and if they do, they must decide how much, to whom, when and in what structure?
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In Larimer County, the number of releases of deeds of trust rose by 4.1 percent from 6,219 to 6,475, marking an increase over the third quarter in 2012, but a much smaller increase than that seen year-over-year in the second quarter, when the number jumped by 35 percent.
Weld County still experienced a sizable increase of 42.3 percent from 3,366 to 4,791, but that increase was also smaller than that seen in the beginning of this year, when the number of mortgages paid off increased by 60 percent.
Statewide, releases of deeds of trust increased by 13.9 percent year-over-year in the third quarter from 2012 to 2013, while the number increased by 76.4 percent in the same period between 2011 and 2013.
Releases of deeds of trust occur when a homeowners pays off a mortgage, and are a reflection of refinancing and home purchase activity.
The slowdown in mortgage payoffs can partially be attributed to rising interest rates, according to the Division of Housing.
“Since 2011, mortgage rates fell in almost every quarter up through the end of 2012, and in response, we saw significant increases in the amount of release activity over time,” the division said in a release.
“Predictably, as mortgage rates began to rise in late 2012, we began to see declines in release activity as 2013 progressed,” the statement said.
Mortgage rates have risen steadily all year, with a 30-year, fixed-rate mortgage increasing from 3.34 percent at the beginning of 2013 to 4.23 percent as of Oct. 10, according to Primary Mortgage Market Survey data published by Freddie Mac.