Colorado Home Mortgage Loan

Jobless Claim numbers came in at a WHOPPING 407K, much higher then even the most aggressive figures estimated by investors.  Typically that should be a market mover for Colorado home mortgage loan rates.  Rates have been posted by most lenders already so we may be in store for some mid-day rate improvement.  So far Colorado home mortgage loan rates appear to be right in line with yesterdays rates.  The Jobless Claims Report released today shows that we are not out of the woods yet and that the economy still faces some serious obstacles.  Obviously when there is fear in the market, investors tend to push their money into a more stable and safe market environment, like Mortgage Backed Securities.  A report like this in the past would have almost instantly pushed Colorado home mortgage loan rates down.  So far today we have not seen the movement yet, but I would expect to see numbers improving soon.  We did have some bad news for the Colorado home mortgage loan market with the recent release of the ISM report on manufacturing.  This report came in better then expected, but its impact will be far less then the Jobless Claims report.  We are maintaining our FLOAT recommendation at least for another day or so.  I don’t expect rates to go up in the next 48 hours.  This will stand true as long as we don’t have any major unexpected announcements made.  I want to remind anyone looking to lock their Colorado home mortgage loan to look at the big picture.  The government has taken swift action to get things in place to help move our economy out of these recessionary pressures.  Actions like this have not been reported since the early 1980’s signalling to me that we are in much worse shape then what we currently know.   For those who reported a Jobless Claim in the last 3 months, my heart goes out to you and I wish you the very best in finding something quickly.  FLOAT recommendation will stay in effect until COB today.  I will send out price alerts as I see them, but I don’t expect any negative movement in the market today. 

ADP’s numbers are in and so far nothing out of the ordinary.  They have reported employment numbers right in line with what investors expected.  Colorado Home Mortgage refinance loan rates did creep up a bit today, but this was still primarily from yesterday’s market activity.  Colorado Home Mortgage refinance loan rates moved up about .125% this morning and have pretty much maintained that level throughout the day.  I did however get a pricing alert from one of my investors late this morning, indicating a price improvement.  I believe the dust is settling from yesterday and investors are beginning to cash in on some short term stock profits by selling.  When investors sell off stock they typically move their money into safer investments like Mortgage Backed Securities.  When demand for MBS increases Colorado Home Mortgage Refinance loan rates will drop.  Several other reports came out today, but none of them caused any real movement in the market.  What we do have to remember is that the reports currently being released have not painted any good pictures for what is to come.  The news being reported still indicate that we are at some of the lowest points we have seen in some time and investors are aware of this.  As soon the tolerance for risk drops for investors,  the sooner the demand for Mortgage Backed Securities will increase.  A couple more reports indicating bad economic data should do the trick.  Look for rates to drop again by Friday, how much will depend on how bad the employment figures turn out to be.  Colorado Home Mortgage refinance lock recommendation remains as a FLOAT.  Be ready to LOCK quickly if the news on Friday comes out better then expected, but so far nothing has indicated that this would be the case.  This was probably the reason we saw a Colorado Home Mortgage refinance loan pricing alert for the better today.  Stay tuned and check out www.Coloradomortgagebanking.com/news  when you get a chance. 

Colorado home loan rates have had some negative news come out today causing interest rate to increases for much of today.  UBS or Union Bank of Switzerland announced that they would be issuing investment opportunities in order to raise capital.  This Financial institution has seen some tough times over the last couple of quarters and in order to relaunch their current market position have had to  asked the market to provide them with capital.  Colorado Home Loan rates will take a hit as investors pull money out of the Mortgage Backed Securities market in order to capitalize on these new investment opportunities.  Even though UBS reported a 19 billion dollar write-down on their financial reports, investors still believe that UBS is a credible investment risk.  By offering higher returns with their capital investment opportunities, investors are likely to take the bait and buy.  This should return some good numbers in the stock market.  Like every other big news item investors do have one flaw and that is a tendency to over react.  Investors are looking for what ever edge they can get to make their portfolios perform better, but realization should set in again towards the end of the week.   I expect that the markets will continue to react to this news tomorrow, but like last week, the second any bad economic news hits the market, investors will begin a quick retreat into the bond markets.  by getting investors back into bonds, Colorado home loan rates will begin to fall.  The question here is when will the economic news prove to be to much for investors to continue this stock buying frenzy.  We may have to wait until Friday when the unemployment figures are released in order to get the movement back, but eventually it will happen.  The real money maker question today is simple, How far will rates go up before investors come to their senses and begin to pull their money back into safer investment vehicles?  Only time will tell, but I believe it will happen by the end of this week.  Floating is tough to recommend when rates go up but for now if you LOCK you will find yourself buying into the over reaction currently taking place in the market.  We will keep a close eye on the reports.   If any of the new economic data begins to show signs that the economy is in a state of recovery then we will issue a Strong LOCK recommendation.  Now lets just think about what was said and ask yourself are we really showing any signs of recovery?  If you answer no then waiting to lock should pay off.