Colorado Home Mortgage Loan

Colorado Mortgage rates saw very little movement today, however we did have a couple of Colorado Mortgage lenders make mid-day price changes improving their rates from this morning.  We are very fortunate to have so many investors to choose from.  Depending on the program, rates differ from one Colorado Mortgage lender to the other.  Lenders have a certain portfolio that they want to attract, and like insurance companies, these Colorado Mortgage lenders tend to have better Colorado Mortgage rates for those meeting their portfolio criteria.  By having 32 different lenders, I am able to get the best Colorado Mortgage rates offered by each lender.  Today was a perfect example of that.  I had a few lenders go out and lower Colorado Mortgage rates in anticipation of what they thought the market was doing.  The market did not respond as positively as these lenders had thought and before they could take back any of the decreases set earlier in the day, I went ahead and Locked a client in at 5.5% fixed.  Even though we had little movement today with Colorado Mortgage rates, it would appear that lenders will be offering the 5.5% rate again.  This Colorado Mortgage rate may or may not stay around for long it will depend on tomorrows Economic news, my recommendation will be to LOCK.  If you can get the 5.5% fixed rate at anytime in the next few day then LOCK.  This week may prove to be an interest week for anyone who wants to gamble on the market.  Colorado Mortgage rates could break through and get as low as 5.375%.  This will only be achieved if the news being released tomorrow, on the ISM business report, turns out to be a lot more negative then anticipated.  Even though the possibility does exist, I still believe that there is no reason to let it ride.  The risk/reward spread does not make the risk worth it.  We have a bond floor to break through, which requires the 5.5% coupon bond price to increase well over the $101.5 range to penetrate that barrier.  It does not appear that the 5.5% coupon bond will do that anytime soon.  So I will keep the LOCK recommendation for 5.5% fixed should you be able to get this rate from your Colorado Mortgage provider.  I will do what ever I can to get that rate for you.  If rates increase tomorrow on good economic news I believe rates will probably continue to rise for the rest of the week.  So if you can make 5.5% work then LOCKING will give you the results you were looking.  For additional news check out www.coloradomortgagebanking.com/news good night.

Daniel

Colorado Home Loan rates should react well today.  Like Friday, news continues to come in that will make a positive movement for Colorado Home Loan rates.  Treasury Secretary Henry Paulson has been talking to Congress about a Bush backed plan to help overhaul our current Financial system.  This overhaul will basically put the Federal Reserve in charge, allowing them more control over monetary policy.  Initially I am against more government control on free markets, but in this case, the Federal Reserve does show signs that are Mortgage Backed Securities friendly.  Translation, they help our Colorado Home Loan rates drop.  Lenders who have released their Colorado Home Loan rates earlier today have already issued a new Price Alert for the better.  This week may prove to be a strong lock recommendation if and when rates hit the 5.5% range.  We are close and should take advantage when in fact that does happen.  Right now we still have the FLOAT recommendation on the expectation that rates should continue to improve today and into tomorrow.  Stay tuned for the LOCK recommendation which may happen late today or tomorrow.  We are waiting for Mortgage Backed Securities to hit the 101.5 price range for the 5.5% coupon when this happens Colorado Home Loan rates should be at the 5.5% range and locking will be recommended.  Sometimes it is best to know when to hold-em and know when to cash in:-) I bet you thought I was going into a Kenny Rogers song (I don’t think so).  Best of Luck, if for some reason we hit  the 5.375% range which currently is unlikely, I will implement an automatic lock for anyone not currently locked.  Call me with questions on your Colorado Home Loan, I am very accessible and enjoy talking to you.
Daniel

On the weekends I like to sit down and talk about a variety of questions brought up in the mortgage industry.  I also try to ensure that I am using some key terms to help in my web page optimization.  Today I want to talk about what consumers refer to as Bad Colorado Credit Home loan products.  These loans were extremely popular in Colorado over the last few years and unfortunately many consumers are paying the price for those loans today.  Bad Colorado Credit home loan programs had a fixed rate for only 2 years, if you were lucky you may have been able to lock that rate for 3 years.  Bad Colorado Credit home loans or sub-prime loans were designed to get out of when the fixed rate period expired.  If you did not refinance your Bad Colorado Credit home loan in time, you would have experienced a 2% rate increase every 6 months until you hit the Bad Colorado credit home loan max market rate (about 12%).  Loose lending by all lenders allowed a number of home buyers to buy homes that probably should not have.  As an industry we only have ourselves to blame for this.  We should have counseled our buyers properly and tried harder to get them into programs like FHA, which are  designed to help people who’s credit may not have been stellar in the past.  I know that in order to maintain a relationship with you for life, I have to build that credibility right from the start, even if I have to tell you something you don’t want to hear.  My heart is in the right place and I would never want my clients to face the obstacles currently faced by those who currently have Bad Colorado credit home loans.  With this said, I conduct credit counselling for all my client regardless of their credit score.  I also provide free credit reports for you and your friends.  I believe that everyone deserves a chance and I take great pride in helping consumers get the right program for the right house. Have a great day and God bless.

Daniel

I don’t typically send out a quick Colorado Mortgage blog like this, but we have had two mid day price changes for the better.  Colorado Mortgage rates are down .25% today making up a majority of what was lost all week.  I hope the trend continues next week for your Colorado mortgage loan.  So far so good Colorado Mortgage rates are reacting just as we had planned:-)

Daniel

Two Colorado home loan rates changes for the better????  Hmmmm Maybe we are on to something.  We will look to see what Colorado home loan rates are doing next week.  Normally don’t do a quick Colorado home loan blog post, but two rate changes for the better I really could not resist.

Colorado home mortgage loan programs got a bit of good news today.  The Fed’s issued two new economic reports both coming in lower then expected.  Colorado home mortgage loan rates have dropped a bit on the news, but the lack of activity in the market makes it hard to gauge exactly what kind of long term impact these reports will have.  Stay tuned on Monday and Tuesday to see if in fact  rates drop on Colorado home mortgage loan programs.  The first report issued early this morning had its importance tied to inflation.  I wrote a lot about inflation and how inflation impacts Colorado home mortgage loans on my other blog site: www.coloradomortgagebanking.com/news so I will not go into too much detail in this article.  The report I am referring to is the Personal income and outlays report which focuses on an individuals source of income, and total income, from month to month.  This report also indicates where the income is being spent.  If spending activity is high the concerns for inflation is high.  When inflation concerns are high Colorado home mortgage loan programs tend to see interest rates increase.  The good news is that this economic report came in lower then expected and actually reiterated what I have been saying for awhile, and that is that inflation is not as bad as investors would have us believe.  The second report came from the University of Michigan and it was the Consumer Sentiment Survey which basically illustrates a persons belief on what the economy is doing.   This report came in very low but not too much lower then expected.  It goes to show that as a society we continue to have our perceptions manipulated by the mass amounts of media experts all claiming to know exactly what the economy is doing.  Unfortunately most of them have a pretty good idea, but because bad news increases ratings, good news normally finds a back burner.  Make no mistake we have major issues in the Colorado home mortgage loan markets and will continue to see these issues over time, but we do have some good data to report.  The most important misconception is that inflation has gotten out of control.  When you look at historical data we are actually trending very low.  Investors have too high of an expectation for where inflation should be, and it is not as bad as they would lead you to beleive.  When investors figure out a way to overcome their fears and accept the facts as it is reported, Colorado home mortgage loan rates will improve.  The next misconception is that home sales are considerably down, actually new data and previously reported data all say home sales are exactly where they should be.  The problem with the data is that sales are compare today with some of the best home sale numbers of all time.  People are still buying homes we are just not breaking any new records.  The last part comes in the forecasts of Foreclosures, yes Foreclosures are high, but they still account for a very small portion of all loans issued.  Foreclosures are a natural part of doing Colorado home mortgage loan business and financial institutions understand and calculate a portion of their portfolios going into default.  The press has jumped on this news to indicate a catastrophic epidemic hitting middle America, and though it is bad, it is not nearly as bad as they would have you believe.  Hope this helps, my recommendation continues to be a FLOAT recommendation.  We will watch the markets for you closely to see what next week will bring.  In the mean time have a great weekend and God bless.

Daniel

Going into the summer season we should see an increase in the number of Colorado Homes listed for sale here in Colorado.  I was sitting down at lunch today with an old friend currently trying to sell his home.  Like many other Colorado homes he has had it on the market for some time and has had to drop the price several times.  He was discouraged to say the least, a common fact for many Colorado homes currently facing the same dilemma.  There are so many different things that you can do to set yourself apart, and before making that next price change, try something different.  Colorado homes currently have a set fee for the buying Realtor and the listing Realtor.  Typically the total listing fee is 6%, 3% going to the buying Realtor and 3% going to the listing Realtor.  My recommendation is to increase the incentive being offered to the Buying Realtor.  Instead of 3% increase it to 4% or 5%, before making another pricing decrease on your home.  Before showing buyers Colorado homes for sale a Realtor will pull the information off of the MLS.  Once the information is pulled the Realtor goes through the data to ensure the Colorado homes meet the minimum criteria set by the buyer.  The realtor will also see the incentives being offered to sell that home and the incentive may be high enough to put your home at the top of the list of home to show.   Colorado homes will face many challenges this summer and as inventory increases so does the need to set yourself apart.  Today’s Financial news ended about the same way it started, in negative territory.  Interest rates on Colorado homes increased by .125% by close of business.  Several key Federal Reserve members spoke today indicating that they would continue to focus on short term interest rate reductions in order to stimulating the economy.  With no end in sight and the worst still to come, investors are forced to react very quickly in the market to avoid any major losses to their portfolio’s.  With so much instability going on in the market it would only make sense that Mortgage Backed Securities continue to be a safe bet for investments.  The concern facing investors right now will be the impacts of continued interest rate reductions to inflation.  The Federal Reserve has already made it clear that rate reductions will be its primary tool to combat recessionary pressures.  By lowering short term interest rates, the Federal Reserve increases consumer spending creating inflationary pressures.  This will be very bad for mortgage rates and will add to some of the issues Colorado homes are already facing.  On a good note for Mortgage Backed Securities, PCE (Personal Consumption Expenditures) reported about 20% lower then expected today.  The PCE report is a good report to measure current inflation expectations.  We should have seen a drop in interest rates today based on this information alone, but that was not the case.  The remaining economic data; Corporate profits, jobless claims, and GDP all fell in line, giving investors a boost in confidence.  This confidence translated into a bullish approach to investing, forcing considerable amounts of money out of the bond market and into the stock market.  I would remain cautious on what rates will do, but the economy continues to be the hot topic and with economic numbers all mirroring numbers last reported during recessionary times, I can’t help to think that rates will get better.  Recommendation remains as a float, but lets watch what early next week brings us.  I hate locking on Friday’s because historically Friday’s rates tend to be higher as activity drops considerably.  Best of Luck and God bless

Daniel

We had a variety of Economic reports coming out today which will impact Colorado Home Mortgage rates.  Colorado Home Mortgage rates are influenced by the activities in Mortgage Backed Securities, which consequently are influenced by real time economic activity.  Real time Economic activity will be reported by Economic reports which are updated 5 or 6 times a week.  Today’s economic reports had a variety of mixed signals for investors.  On a positive note GDP, Corporate Profits, and Jobless claims all came in as expected.  Only one report came in worse then expected and that was PCE (Personal Consumption Expenditures).  This report measures inflationary pressures due to spending habits displayed by consumers.  When PCE figures are low inflationary figures will also trend low.  Normally this would be a very good sign for Colorado Home Mortgage rates.  I still believe that rates will improve slightly over the next week or so baring any major economic anomaly forcing rates up.  Based on what we are seeing today rates will go up slightly.  Investors who used caution before in their investing techniques may choose to be a little more bullish today.  This boost of confidence really does not make much sense to me, because it is based on the fact that investors predicted the economic reports correclty today.  What they will come to find out very quickly is that these numbers are still bad for the economy so bad in fact that the economic data now coming out have reached the low points of 2001, and yes we were in a recession at the time.  Look for Colorado Home Mortgage rates to follow a bit of an up and down approach, but waiting for a low period may pay off as early as late next week.  Lets just hope rates do not move up to much to off set the risk of gambling on lower interest rates next week.

Today turned out to be a very interesting day for Colorado Mortgage rates.  Mortgage backed securities started the day higher then yesterday initially driving interest rates down, but as the day progressed Colorado Mortgage rates actually closed a bit higher then expected.  The Durable goods report came in considerably lower then expected and sent Colorado Mortgage rates on a downward trend, but the release of a very large FHA jumbo portfolio created an abundance of bonds in the market and ultimatley took its toll on rates.  I would not be concerned by the price increase late in the day I am sure that Colorado Mortgage investors were influenced by the increase in the supply of bonds and the fear that GDP will some how come in better then expected.   Tomorrow we should continue to see how Colorado Mortgage investors plan to react to Friday’s GDP numbers, my guess is that Colorado Mortgage rates will see another slight increase, but not enough to impact your lock rate.  At this point if you have not locked you might as well ride it out through the end of the week.  By not locking early in the week you have in a sense committed yourself to the game, let it ride.  Those clients that chose to gamble may find their Colorado Mortgage rates improve considerably by mid next week.  Over the last 6 weeks or so we have only had one Economic report come in better then expected and I am betting that GDP will come in below expectations and Colorado Mortgage rates will drop in the near future.  Be prepared to react if the news comes in better then expected, but for now my recommendation continues to be: FLOAT.  Thanks for staying tuned and God bless.  Remember to check out my other site: www.coloradomortgagebanking.com/news

Daniel 

Colorado home loan rates will get a boost driving interest rates slightly lower today.  The Durabale Goods report was released and the economic data in that report came in far below what was expected.  I have said this time after time that bad economic data translates to interest rate reductions for Colorado home loan products.  The fact that we had any good economic news at all earlier in the week caused myself and other lenders to take a very cautious approach to what Colorado home loan rates will do.  I still believe that anything below 6% is a good rate but at this time I don’t see anything today that would lead me to believe rates will go up.  The much anticipated GDP report will be due out soon and if it is anything like today’s Durable goods report expect Colorado home loan rates to improve all the way into next week:-)  When you get a chance today take a look at www.coloradomortgagebanking.com/news for additional mortgage information.  I will go out on a limb and say that we are currently in a recession.  Over the last 6 weeks or so the only encouraging economic data that came in was the new home sales report which was a fluke in my eyes.  Everything else we are seeing indicates that the economy has yet to recover and until we hit rock bottom (recession) we will continue to see bad economic data.  This will be good for Colorado home loan rates.  Stay tuned for more details throughout the end of this week.