Colorado Home Mortgage Loan

Today was a rough day for Mortgage Backed Securities.   Colorado Mortgage and Loan rates increased about .375% when everything finally settled in today.  Producer Price Index will typically preview what is to come in the Consumer Price index due out shortly.  If today is any indication we may see rates top the 6.0% range sometime tomorrow.  It is hard to recommend Floating at this time, but I can’t help but to think that if you lock tomorrow you will be locking at a high point in the Colorado Mortgage and Loan rate market.  We also have a dark horse report being released with the Consumer Pricing index and that is industrial production numbers.    Industrial Production is one of the major reports measuring economic activity. Stronger economic growth typically leads to higher inflation, so fixed income markets usual react negatively to stronger than expected economic growth.   Colorado Mortgage and Loan rates are expected to increase tomorrow stay tuned to see what the inflationary numbers look like.  Thanks for all your support and look for the update first thing tomorrow. 

Daniel 

You can get most of the Retail Sales  information from www.coloradomortgagebanking.com/news  Colorado Home Loan rates are currently moving up and down with very little volatility at the movement, indicating that Colorado Home Loan rate pricing should stay right where they started the day.  The Retail Sales numbers came in slightly higher then what investors anticipated they would, but not high enough to make Colorado Home Loan rates increase.  The real story will come in the days ahead.  We have two inflationary reports coming out and both reports can move Colorado Home Loan rates up or down fairly quickly.  The Consumer Price Index and the Producer Price Index both tell the story of what inflation has done to pricing as a whole.  These indicators, which are reported monthly, will set the stage for what Colorado Home Loan rates will do for the remainder of the month.  Experts are currently stressing the fact that energy prices are at a point where inflation has to be high.  I too believe that this will impact the numbers, but investors have already anticipated high energy costs into their risk assessments.  So what happens if these reports come in at or below expectations?  Colorado Home Loan Rates will improve.  Based on the state of the Economy and the fact that people are afraid to buy, inflation should be in line.  Inflation can really only go up if demand is high, if demand is low pricing will decrease.  Low demand normally will cause inflation to decrease.  So we are back to our original thought and that is what story will energy have with the numbers?  Hard to say exactly how investors will react to this, but we will know by Thursday.  I will keep the FLOAT recommendation in place, but stay tuned to see what the reports will do.  God Bless and thank you for staying tuned.

Colorado Home Mortgage Refinance loan rates will certainly have some improvement today on news that Consumer Sentiment has hit a new 20 year low.  In 1982 the U.S. found itself recovering from the worst Colorado Home Mortgage Refinance loan rates of all time.  It was obvious at the time that because jobless claims were high, interest rates were unbearable, and inflation was in double digits, that people were feeling beat and uneasy with the direction the economy was going.  Well at the time Consumer Sentiment was at 62.2.  Consumer Sentiment rating shows that Americans today feel about the same as Americans in the early 1980’s.  So do we now have clear and desisive proof indicating that we are in a tough economic situation?  Consumers certainly believe that.  When Consumer Sentiment is low consumers choose to save and invest in low risk investments.  These investments include, but are not limited to, Mortgage Backed Securities.  So for the short term, at least for today, Colorado Home Mortgage Refinance Loan rates are better.  I have yet to see any major shifts in pricing, but we will continue to monitor that as the day progresses.  Regardless, Colorado Home Mortgage Loan lenders released rates lower today, stopping the daily rate increases shown in the market over the last 96 hours.  LOCKING today and capturing some of the losses from yesterday will be a good choice if you are closing soon.  If not we have more economic news in store early next week.  Next week will be an interesting week for Colorado Home Mortgage Refinance loan rates.  Inflationary reports will be released and investors will certainly respond to what they hear.  Colorado Home Mortgage Refinance Loan rates will probably start off a little higher on Monday in anticipation to what Tuesday’s and Wednesday’s reports will say.  Once the information is released rates will respond quickly.  Colorado Home Mortgage Refinance Loan rates will certainly increase if inflation reports higher then expected, likewise they will drop if the reports come in as expected.   One nagging issues for inflation’s next week, will be the cost of energy factored into the inflationary data.  This is expected to have negative results on the data.   However, Given the state of the economy excluding energy, inflationary pressures should come in at or below expectation.  The make or break figure will be how much energy contributes to the overall inflation calculation.   Those looking to FLOAT may see the gamble pay off.  Tuesday and Wednesday will tell us where we stand.   The last two Inflationary reports came in as expected just an FYI. . .

Colorado home loan rates slipped again this afternoon as federal regulators continue to send strong signals on liquidity reform.  Today’s housing committee had several open and public opinions about the severity of the housing market and what will be done in the near future.  One thing for sure, we are in uncharted waters.  Today’s hearings focused on a bill that would deliver $400 Billion dollars in bailout funds to consumers who are facing foreclosure or financial hardships due to poorly designed Colorado home loan programs.  Normally news like this would actually allow Colorado home loan rates to drop, but that did not happen.  Instead the market reacted more heavily on what was said outside the meeting walls versus what was said in the meeting.  Several political figures have expressed strong opinions on what has caused the issues in the financial mortgage lending markets.  Sen. Bunning indicating on MSN that the last two Federal Reserve Chairman’s dropped the ball.  He indicated that over the last 12 years the Fed’s stood ideally by as the crisis built.  I agree that in hind sight, stonger oversight would have been a better deterrent for what is going on in the market today, however it is easier to recognize that today after the fact then when it was going on.  Remember that at the time our economy had experience some of the greatest economical booms this century has ever seen in the financial markets.  Its would have been political suicide to convince their consituants that reform was needed to limit growth.  They would have been voted right out of office and guess what, Sen. Bunning having been in the Senate during these times, played along side everyone else.  Colorado home loan rates continue to fluctuate up and down in a market uncertain of what is to come.  Investors are holding out hope that our economy will start its recovery soon, but have started to implement a wait and see approach.  Bond volume is down and when volume is down, and supply is up, Colorado home loan rates react negatively.  Regardless of the economic data coming in, if we don’t have investors buying we become victims to the supply side movement of rates.  Economic data coming out lately should have created pressures to buy Mortgage Backed Securities not sell them.  Rates should be coming down.  The same forces presented themselves into the market back in 2003 with a much different result.  We saw rates hit a historic low and for the first time we saw fixed rates hit 5.0%.  .  The spread between the 10 year treasury bond and 30 year 5.5% coupon bond is such that rates should be lower then what is being offered by Colorado home loan lenders.  So the question is do we lock or do we float?  Well if you locked last Friday as recommended then you are doing much better then those faced with locking today.  However its hard to say how long this lack of investor confidence will last and how much higher rates will go before seeing some relief.  I believe that until we see economic data indicating a clear sign on the state of the economy, investors will continue to take a cautious approach to the market.  This will keep volume trading to a minimum.  Until volume picks up it really doesn’t make a difference on what is reported, we will continue to have a supply issues, causing Colorado Home Loan rates to go up.  Have a great evening and good luck:-)  Read more at www.coloradomortgagebanking.com/news

Looking at the stock market this morning it has become very clear that Corporate profits will come in lower then expected.  Colorado Mortgage Rates should see some improvements by the end of the day.  When investors look for safe investments, Mortgage Backed Securities becomes a good choice.  We have not see a lot of data on Corporate profits yet, but insider trading should clue us in on what is expected.  These insiders tend to sell  just shortly before profits are reported and as you can see the market is currently down.  If the information coming out on Corporate profits were good news the market would be up right now.  Since the market is down we can only conclude that the information due out will be negative.   Colorado Mortgage Rates should see a nice improvement over the rates released this morning.  The only other obstacle we need to continue to monitor will be the supply of bonds being offered in the market.  The oversupply of bonds can off set any interest rate improvement expected in the next 24 hours.  Though this can be an issue, we should look at the reason why we have so many bonds being put on the market.  Maybe it is because the demand for these securities will increase in the near future.  Why will the demand increase?  Simply put these bond suppliers anticipate negative economic news in the near future and believe they will see prices increase for the bonds sold.  In the long run when the price of bonds increase interest rates will decrease.  This brings me back to my initial prediction that rates should improve by the end of the day and that we may have some good momentum in the near future.  FLOATING remains the recommendation in play, but remember if the rate makes sense to you then LOCK, rates are still pretty good in relation to rates over the last 2 1/2 years.  Call me with questions 719-314-1320  Best of luck

Daniel 

The Federal Open Market Committee released their March meeting minutes to the public today.  Colorado Home Mortgage Loan rates tend to move up or down depending on how investors view the information being released.  The biggest issues for investors buying Mortgage Backed Securities is the FOMC outlook on inflation.  Inflation will always devalue a  long term investment like MBS which in return will cause Colorado home mortgage loan rates to jump up.  Today’s report however did not have the substance to move the market in any particular direction.  Normally when the minute reports are as vague as they are today, investors will become cautious causing rates to come down a bit.  Today we did not experience this and it was actually the lack of activity that brought the price of the bonds down this morning.  The reason that activity drives pricing on bonds up and down can be explained in simple economic terms.  Supply and demand.  Low activity signals low demand, and when you have a number of suppliers all trying to sell their bonds, a price reduction is needed to attract more demand.  When the price of bonds drop Colorado home mortgage loan rates will rise.  The lack of activity can only be explained right now by the degree of uncertainty investors are showing in their investment strategies.  When there is uncertainty it would be unwise to move  your investments back and forth on a daily basis.  Moving in and out of the market will never give the investor the longterm results their investors seek from a portfolio.   The wait and see approach typically takes over.  As soon as more data comes in that signals tough times ahead, the sooner we will see rates drop again.  Friday’s seem to be a good day for rates, though historically Friday’s rates have been higher.  I would expect rates to drop a bit in the next day or two and we will anticipate that the remaining weeks data will not paint a pretty picture on the economy.  A FLOATING recommendation has been issued but  remember to Target a rate and if your Colorado home mortgage loan rate expectation are met then LOCK.  Best of Luck and God Bless.

Check out www.coloradomortgagebanking.com/news for some additional news on Colorado home mortgage loan information.  Early this morning TPG a Texas investment company offered WAMU $5 billion dollars in an effort to block JP Morgan from buying WAMU.  WAMU has hit some difficult times with some of their Mortgage Portfolio’s and has recently become an easy target for take over.  As their stock decreases in value other institutions become very interested in purchasing a first rate bank at a discount.  This is what we saw in the last week or so, and just before JP Morgan could build enough momentum to purchase the stock out right, TPG infused WAMU with $5 Billion dollars under terms yet to be disclosed.  This sent the stock sailing and pushed investors out of Mortgage Backed Securities and back into the stock market.  The recent activity in the stock market has caused Colorado home mortgage loan rates to start out a little higher this morning.  These rates have pretty much stayed unchanged throughout the day.  Other Reports began to trickle in late this morning indicating a down grade in profit expectation for a couple of industry leading companies.  These reports caused several investors to bail out of stocks late in the morning defusing any of the stock markets gains from earlier in the day.   Overall Colorado home mortgage loan rates would have seen greater increases in their rates had the market not reported any derogatory news, but as it stands it was a day of ups and downs, bringing us right back to where we started.  Colorado home mortgage loan rates also suffered a bit due to the lack of activity in volume.  We expect to see more activity as the week progresses and should see rates impacted by the economic reports due out throughout the week.  If the trend continues as anticipated we should see rates fall back into Fridays lows.  FLOATING will not be a high risk, but please  remember that if we can lock you in around the 5.5% range then LOCK.  Over the last year 5.5% seems to be that low point and even if rates go a little lower you will still be locked into a Colorado home mortgage loan you can live with.  Good luck and God Bless

I am a pretty trusting person so from time to time when I see something come up that you need to be aware of I will write about it here.  Colorado homes will begin to flood the market again this summer season and two days ago we had an alarming thing happen in one of these Colorado homes.  I have never suggested to any of my clients to take pictures of any Colorado homes in the past, but one client did just that.  To our disbelief the owners of the house had swapped out the appliances.  The appliances that were put in after the fact, appeared to be less superior then the original appliances.  The sellers basically did a bait and switch and in doing so committed fraud.  Colorado homes are expected to remain in the exact shape that was agreed upon in the contract between the buyers and the sellers.  Doing something like this constitutes as fraud, and in the many years that I have been doing transactions for Colorado homes I have never seen this happen.  If there is any thought in anyone’s mind that this is some how OK, you would be wrong.  The seller of this home now will need to compensate the buyers for the loss of trust that took place, which will probably not happen.  The end result is that the buyers will be looking for another Colorado home and this seller will be required to put their house up on the market again.  It is a sad sad example of what people will do, and for what a $400 difference in appliances.  Colorado homes being listed this summer please remember to do the right thing and if there is any doubt on whether you are doing the right thing, odds are you will be better off not doing that.  God bless and have a great weekend.

Daniel

Colorado Home Loan rates dropped again we should see the full .25% difference in your pricing.  Lets keep an eye on rates over the next few hours.  In the mean time we have issued a LOCK recommendation.  Colorado Home Loan rates have improved Stay tuned for more Colorado Home Loan market news.

Bad economic news continues to be the top story in the market.   This has created a new demand for Mortgage Backed Securities.  Colorado Mortgage rates should see nice improvement today as bad economic news pushes investors towards Mortgage Backed Securities.  Unemployment figures came in at its worst level since 2003.  Also making headlines was the Employment Situation Report which reports a number of different employment related data.  The Employment Situation Report like the Unemployment report, did not have anything good to share.  This information will cause investors to move money out of high risk investments  making Mortgage Backed Securities a popular alternative investment.  Colorado Mortgage rates already released this morning show .25% better then yesterday.  This Colorado Mortgage rate reduction makes up all the ground lost in the last week.  If the trend continues we may see rates drop a little further by Monday or Tuesday of next week.  I always tell people be cautious of waiting to long to LOCK.  I have been burned way to many times to watch other people walk straight into fire.  When Colorado Mortgage rates are good then LOCK.   If Colorado Mortgage rates appear to be dropping in the near future, then FLOATING is recommended.  Right now I will give it about an 80% chance that rates will continue to drop into next week, but we will have to wait and see for that to happen.  Today if Colorado Mortgage rates drop to a point that is satisfactory to you then LOCK don’t wait.  Only LOCKING will guarantee you a Colorado Mortgage rate.  We have Economic reports due out just about everyday, and next week is no exception.  Investors are praying for some good news and if the economic reports next week show any light of hope Colorado Mortgage rates will begin to go up again.  I wrote both my blogs today and during that time I have had two Colorado Mortgage price alert changes for the better:-)  We will continue to Monitor Colorado Mortgage rates, but if you can get a Colorado Mortgage at 5.5% fixed then LOCK.  I can get that for you right now, which means LOCKING will be recommended.  If you want to ride it out Floating will not be too risky, it just will not guarantee a Colorado Mortgage fixed rate at 5.5%.  The choice is yours:-) 

Daniel