Typically,
a release of a deed of trust
occurs when a real estate loan is paid off whether through refinance,
sale of
property, or because the owner has made the final payment on the loan.
Decreases in release activity occur as refinance and home-sale activity
decreases, and rising release totals typically indicate increases in the
demand
for home loans and real estate.
Release activity also fell from the fourth quarter of 2013 to the
first quarter of 2014, dropping 19.6 percent.
There were 62,312 deeds released during the fourth quarter of last year.
“This is the fourth quarter in a row of
declines in release activity, and it looks like the most recent refinance boom is already over,” said Ryan
McMaken, an economist with the Colorado Division of Housing. “Mortgage rates
are still low compared to where they were in 2008, but we’ve seen some
significant increases in rates since 2012.”
Trends in release activity were not uniform
across the state, although all of the 21 counties surveyed reported decreases
in release activity from the first quarter of 2013 to the first quarter of this
year. The largest increases were reported in Broomfield
and Boulder
counties where release activity decreased 61.5 percent and 58.9 percent,
respectively. The smallest decreases were found in Eagle and Alamosa counties
where activity decreased 21.1 percent and 31.1 percent, respectively.
Adjusted for the number of existing housing
units in each county, the counties with the highest rates of release activity during
2014’s first quarter were Douglas, Summit,
and Weld counties. The counties with the least activity were Fremont, Pueblo and Delta counties.
“Release activity is still relatively strong in some
high-income areas and places with strong employment,” McMaken said.
Totals for releases of deeds of trust are collected quarterly by
the Colorado Division of Housing. This report tracks releases of deeds of trust
as reported by public trustees in Colorado.
The report includes twenty-one counties which 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
twenty-one counties chosen.
