Colorado Home Mortgage Loan

Colorado

Mortgage Rates are determined by the Mortgage Backed Securities market.  Most people refer to this market as the bond market.  The bond market competes with the equities market to attract demand from investors.  Colorado Mortgage Rates are determined by the demand shown in the bond market.  The relationship between Mortgage Backed Securities pricing and Colorado Mortgage Rates follow an inverse pattern.  The best way to look at the inverse relationship is to watch the price of bonds, when the price of bonds goes up, Colorado Mortgage Rates will fall. This will also hold true as bond prices drop, Colorado Mortgage Rates will naturally go up.  This trend does not change for any reason, so what we have to look for in order to properly determine Colorado Mortgage Rates, are the factors that increase or decrease demand in the bond market.

Demand in the bond market will normally be determined by investor’s adversity towards risk. Investors are inherently conservative and look for every opportunity to eliminate risk from their portfolios.  Colorado Mortgage Rates also use risk factors when determining its final rate which we will elaborate later.  Right now we will simply focus on the risk associated with investments. Bonds are considered safe and sometimes risk free investments.  Because the risk is low the returns are also low.  Equities (Stocks) on the other hand will have high risk associated with them, but in order to compensate for the risk, stocks will need to offer a much better return. Investors look at both markets and in times of bad economic progression bonds become a safer investment.  In times of good economic progression Stocks become a good investment. Colorado Mortgage Rates will typically come in lower during low economic growth periods and likewise Colorado Mortgage Rates will suffer during good economic growth periods.  So if you simply want to get a feel of where Colorado Mortgage Rates are in relation to historical data look at what is going on in the economy.

What is going on in the economy is heavily monitored by investors when determining how aggressive they will be in buying and selling bonds.  Economic data reports are the primary driver of investor behavior in the markets.  These economic reports come out in a verity of formats. Some that you may be familiar with are: GDP, Consumer Sentiment, Cost Price Index, and Jobless Claims just to name a few.  Colorado Mortgage Rates react immediately on the data released by these economic reports.  The economic standings are dictated by what is said in the data.  If the data says we are in an economic downward spiral investors quickly jump out of the equities market and reinvest in the bond market.  The increased buy demand drives to price of Mortgage Backed Securities up which drives Colorado Mortgage Rates down.  Obviously, Colorado Mortgage Rates have the opposite movement when the economic data released is better then expected.  This is how core Colorado Mortgage Rates are determined. 

The last component impacting Colorado Mortgage Rates are the loans risk parameters.  As I stated before investors demand a higher return when they take on more risk.  Colorado Mortgage Rates are no different in the returns required for the risk taken.  Colorado Mortgage Rates start off at a base risk factor.  Normally clients with a 720 or higher credit score, Full Documentation can be verified for their income, and a minimum of 20% down payment has been made will qualify under the least amount of risk.  These type of loans will certainly carry a low risk premium and will offer the best Colorado Mortgage Rates available.  Once the loan begins to add risk factors like 100% financing or credit scores below 720, Colorado Mortgage Rates begin to go up.  This is the most basic way to explain how Colorado Mortgage Rates are determined, and I would encourage you to contact us directly with any other Colorado Mortgage Rates questions you might have. 

Colorado Home Mortgage Online was founded to provide a simple solution for your Colorado Home Mortgage. Our team is dedicated to ensure that your Colorado Home Mortgage online experience benefits you at a time when you are ready. We provide easy to use navigation tools throughout our online mortgage sites that will help you make the right Colorado Home Mortgage decisions. 24 hours a day, 7 days a week.  We want you to have the information at your finger tips when you need it most. Our personal touch can be added with a simple phone call. We do enjoy communicating with our clients and will communicate with you by phone or email, whichever method you prefer. Research shows that consumers willing to take time to find out which Colorado Home Mortgage options are available are the same consumers saving thousands of dollars over the life of their Colorado Home Mortgage loan. Colorado Home Mortgage online will detail in great lengths the variety of Colorado Home Mortgage programs now available to you. Once you have begun to narrow your choices down, you can call our Colorado Home Mortgage specialist to help you answer any other questions that you might have. Our focus in the Colorado Home Mortgage business is to have a strong local presence to help put a friendly local face to your biggest financial purchase. Located in the heart of Colorado, we have a brick and mortar structure so that you can put a name to the online Colorado Home Mortgage originator helping you through the process. We continue to have a strong presence within internet search engines and have invested a lot to get the information out to you. We want all home owners and future home owners to benefit from our easy to use Colorado Home Mortgage Online sites. We take a very positive and friendly attitude with our clients and we pride ourselves in doing what is right for you. We look forward to your call and hope that you will enjoy your Colorado Home Mortgage online experience!!

Colorado Mortgage rates jump up again today on better then expected durable goods reporting.  Durable goods came in at -.5% which is a bit better then the -.7% forecasted by investors.  The key factor impacting Colorado mortgage rates were the core components in Durable Goods, which actually achieved a 2.5% growth rather then the .7% expected increase.  Investors viewed the data in a positive light giving new confidence for investing.  Colorado Mortgage rates increased as the demand for Mortgage Backed Securities dropped.  Right now we should be seeing Colorado Mortgage rates around 6.0%, which is the highest point achieved this month.  We will continue to monitor this closely.  Today we will continue to support a FLOAT recommendation.  Locking in now will only have you locking at this month’s highest point.  We are expecting a variety of economic reports over the next couple of days which will create movement in Colorado Mortgage rates.  The reports to watch for this week will be Core PCE and Chicago PMI.

The Personal Consumption Expenditures report is basically a measure of goods and services targeted towards individuals and consumed by individuals. There are two broad indexes of consumer prices in the United States: the Consumer Price Index (CPI) and the PCE index. They are similar in many respects, but there are some important differences which can lead to large gaps between CPI and PCE inflation rates at times. The PCE uses a chain index which takes into account consumers’ changing consumption due to prices, while the CPI uses a fixed basket of goods with weightings that do not change over time. Economists frequently focus on the Core rate, which excludes the volatile food and energy components.  The PCE is the Fed’s favorite inflation indicator and Colorado mortgage markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the Colorado Mortgage markets adjust interest rates to reflect those changes. The effect of these changes is seen across all markets, equities, bonds and mortgage backed securities. As a general rule, higher inflation is negative for Colorado Mortgage rates.  

The Chicago PMI is measured by new orders, production, supplier deliveries, inventories and employment; asking for positive, negative or unchanged readings of each. A reading above 50% generally indicates that the manufacturing sector is expanding, and below 50% signifies contraction.  It is looked at as a good indicator for future inflationary pressures and can have a big effect on the markets. Changes in prices paid by manufacturers can be indicative of accelerating or decelerating inflation and future manufacturing activity can be predicted by changes in new orders. Strength in the manufacturing sector may be a sign of a strong economy and is usually negative for Colorado Mortgage bonds.

As I said over the last couple days, activity in the Colorado Mortgage rates market will be high this week.  Nothing moves Colorado Mortgage rates in any specific direction like inflationary pressures.  These reports will release inflationary numbers and the Colorado Mortgage market will react immediately.  If the inflationary numbers are high, Colorado Mortgage Rates will increase.  If the numbers come back lower then expected then a Colorado Mortgage rate recovery will be in place.  We will have to sit tight until Thursday or Friday of this week to see any real movement.  If you have some time check out www.coloradomortgagebanking.com/news I look forward in assisting you with your future Colorado Mortgage needs.

Daniel

Colorado Home Mortgage Refinance rates saw some more bad news hit the market.  Bad economic news will typically be good for Colorado Home Mortgage Refinance rates.  The reports that came out today should have lowered Colorado Home Mortgage Refinance rates, but that just was not the case.  Instead Colorado Home Mortgage rates jumped up as investors moved quickly to sell off bonds.  You can read more about the Profit Seekers in bonds by reading www.coloradomortgagebanking.com/news.  I will be using this site to talk specifics about economic reports currently released and due to be released in the near future.  The biggest mover of Colorado Home Mortgage Refinance rates are economic data reports and is why I focus this site on the explanation of these reports. 

New Home Sales for April posted 526K which was 6K higher then expected.  This caused investors to regain some lost confidence in the market and we saw investors selling off bonds to free up funds for equity trading.  We also had the Median home price report a 1.1% increase year over year.  I have a lot of people that ask me about home prices and the answer is simple; homes will retain their values over time and will increase in value over time.  This is the way it has always been and this is how it will be.

Colorado Home Mortgage Refinance rates saw some additional active after the release of Consumer Confidence.  Consumer Confidence measures consumer’s interpretations on where the economy is and where the economy is going.  It is a basic feeler for what people think about the economy.  Colorado Home Mortgage Refinance rates tend to do better in times where Confidence is low.  The primary reason is that investors know spending will be lower during tough times therefore forcing them to invest in safer financial instruments like bonds.  Consumer Confidence came in at 57.2 where the consensus was 62.0.  This in itself should have moved Colorado Home Mortgage Refinance rates down, but other market activities held it in place.  However it should be noted had confidence readings not been so poor the potential for Colorado Home Mortgage Refinance rates to increase even more would have been great. 

Finally, Colorado Home Mortgage Refinance rates will be impacted by several reports over the next three days.  We will maintain a FLOAT strategy, but we will ask you to use some CAUTION.  This is simply one persons predictions and I am forecasting that the economic data being released over the next couple days will favor Colorado Home Mortgage Refinance rates.  The experts have forecasted some poor numbers and the two biggest reports coming out Durable Goods and Preliminary GDP seem to be in areas of the economy that are not reporting stronger then expected numbers.

Durable Goods Orders reports the number of new orders placed with domestic manufacturers for immediate and future delivery. Durable goods are items considered to be useful for at least three years (such as vehicles, large appliances and computers.)  This report will Provide insight into demand as well as business investment. Companies willing to spend more on equipment and other capital are possibly experiencing sustainable growth and could be planning on greater production capacity. The Durable Goods Orders report is a leading indicator for the manufacturing sector and has a big effect on the Colorado Home Mortgage Refinance markets despite its volatility and large revisions. The non-defense category closely reflects the GDP category, Producer Durable Equipment, and is looked at more closely than the overall headline number. 

The GDP report gives a complete picture of the state of the economy as well as estimates for future output based on supply and demand.  Advance GDP is the initial reading each quarter. As more data is collected, the Preliminary GDP release reflects the first revision. The Final GDP report for the prior quarter is released near the end of the current quarter.  GDP is a significant report for several reasons. It is the most encompassing picture of economic activity and when paired with the employment report gives a picture of productivity growth. The data is used to define business cycle peaks and troughs. Higher GDP points to accelerated inflation while lower GDP indicates a weak economy.

We will also have Jobless Claims being reported which will either help or hurt Colorado Home Mortgage Refinance rates depending on the direction GDP and Durable Goods force rates to go.  The report works well with GDP and should help dictate Colorado Home Mortgage Refinance movements later that day.  Please call me with any Colorado Home Mortgage refinance questions and have a great evening.

Daniel

Colorado Online Mortgage rates improved today as investors began to realize that the mortgage backed securities market was a little undervalued.  Investors went on a selling frenzy yesterday on fears that inflation could be higher then what was currently being reported.  Obviously inflation is bad for Colorado Online Mortgage rates.  I tend to reserve this site to talk about the various economic reports impacting Colorado Online Mortgage rates.  I also try to explain how the data was interpreted by the market and what that means to future Mortgage Backed Securities Pricing.  The price of bonds has an inverse relationship to Colorado Online Mortgage rates.  When bonds are up Colorado Online Mortgage rates are down. 

Most movements created in the market revolve around volume activity in the market.  Volume in the market is dictated by Economic activity, which is reported by economic data and/or current headlines.  In the absence of economic data, current headlines take the center stage for what investors look at to help them determine their buying and selling strategies in the market.  When buying volume is up Colorado Online Mortgage rates will decline.  If selling volume is up Colorado Online Mortgage rates will climb.  Our only economic data report for today came in the form of Existing home sales.  The Existing Home Sales Index reports the number of existing homes sold, expressed on an annual basis. The sales of existing homes accounts for 84% of all houses sold and the total volume indicates housing demand. The report is a strong predictor of future national mortgage origination volume and for near term spending for housing-related items. The Existing Home Sales expectation for today was around 4.85 million and the actual data came in around 4.89 million.  This data appeared to be better then expected and typically causes Colorado Online Mortgage rates to jump a bit.  However the data is still so poor that investors could not help but be concerned about the volume in Home sales.  This concerned outweighed the better then expected numbers and caused investors to seek safer investments.  When investors seek safe investments bonds become a nice portfolio to have. We also had inventory numbers released for homes currently on the market.  This report showed that we had more homes on the market then ever before.  Our inventory levels came in at a new 22 year high and not since 1985 have home inventories been so bad. 

Colorado Online Mortgage rates will be impacted by a verity of economic reports due out.  Durable orders; consumer confidence; and new home sales will all be market movers next week.  The biggest report for the week will come in Durable Orders which reports on Wednesday.  Durable Goods Orders reports the number of new orders placed with domestic manufacturers for immediate and future delivery. Durable goods are items considered to be useful for at least three years (such as vehicles, large appliances and computers.) It is important for Colorado Online Mortgage rates because durable goods provides insight into demand as well as business investment. Companies willing to spend more on equipment and other capital are possibly experiencing sustainable growth and could be planning on greater production capacity. The Durable Goods Orders report is a leading indicator for the manufacturing sector and has a big effect on the Colorado Online Mortgage markets despite its volatility and large revisions. The non-defense category closely reflects the GDP category, Producer Durable Equipment, and is looked at more closely than the overall headline number.

We believe that we will continue to see light reporting through Tuesday of next week and therefore should see Colorado Online Mortgage rates continue to regain this weeks lost ground.  Colorado Online Mortgage rates will be focused on Headlines until then and because most of the 1Q reporting has already found its way into the market no surprises appear to be on the horizon.  If you can get 5.75% the LOCK otherwise continue to FLOAT until early next week.  Call me with your Colorado Online Mortgage questions and take a look at www.coloradomortgagebanking.com/news.

Colorado Home Mortgage Loan rates took a hard hit today on reports that Inflation appeared to be under estimated.  Bill Gross an investment guru and expert in the market made some strong statements indicating that current inflationary data appeared to be under estimated, and that inflation data going forward would be worse then expected.  Bill Gross currently runs the biggest investment portfolio at PIMCO and has been an expert in this field for many years.  His comments to me appear to be accurate, but he does not sit on any committees responsible for reporting inflationary data.  These comments are made based on his professional opinion and by looking at the recent increases in oil, I believe he is correct.  Colorado Home Mortgage Loan rates took about a .25% hit today and appears to be on the rise.  Much of the activity felt in the Colorado Home Mortgage Loan rate market was based on fear, but the fear does seem to be warranted.  It is hard to gauge the exact impact oil will have on inflation, but it is easy to see that it will be a negative impact.  Colorado Home Mortgage Loan rates will continue to jump up as negative inflationary data comes in. 

I have implemented a FLOAT recommendation today simply because the increases felt  today were a result of fear, not hard statistical data released by any economic reporting agencies.  Colorado Home Mortgage Loan rates jumped up today and as a result 5.75% may not be available.  I am maintaining a Colorado Home Mortgage Loan lock recommendation at 5.75% and unless I see something in the data that requires we increase this recommendation to a higher rates will have my clients floating.  Floating will stay as the recommendation until we can get that Colorado Home Mortgage Loan rate at or below 5.75%.  It’s interesting what 24 hours will do, yesterday the feeling was that we have some tough times ahead and that we are not even close to being out of the economical debacle we currently face.  Today I am seeing experts changing their tune on the news that Jobless Claims came in better then expected.  Come on!  Realistically we have some tough times ahead which normally means Colorado Home Mortgage Loan rates should be getting better, but we have one major obstacle and that will be inflationary pressure.  Any positive gains in the Colorado Home Mortgage Loan market due to economic issues will be off set by how bad inflation reacts over the next 12 months.  To what extent this will happen is still hard to gauge.   

The Jobless claims report came in at 365K new claims filed, which is slightly better then the 370K expected.  Normally this alone would not create and movement in Colorado Home Mortgage Loan rates, but today it did push Colorado Home Mortgage Loan rates up a bit.  Initial jobless claims measure the number of first time filings for state jobless benefits. Claims are quite volatile from week to week; therefore many analysts track a four-week moving average to get a better sense of the underlying trend. The report also contains two other statistics- the number of people receiving state benefits and the insured unemployment rate.  The four-week moving average and continuing claims are watched more closely for changes. The labor market is considered to be improving when the four-week moving average goes below 400,000. If unemployment goes low enough it can put wage pressure on the economy and can cause increases in interest rates.  What is interesting about today’s release is that it is the 4^th highest Jobless Claims reported in the last 3 years yet the forecast seemed to be viewed as a positive sign for economic recovery.  Go figure.  Colorado Home Mortgage Loan rates in the past would have responded very positive to the high number, but with such terrible data being released month after month it actual appeared as an improvement. 

Tomorrow we will see our last economic report until Tuesday of next week.  Existing Home Sales will create some movement for Colorado Home Mortgage Loan rates but it does not move the market much.    The Existing Home Sales Index reports the number of existing homes sold, expressed on an annual basis. The sales of existing homes accounts for 84% of all houses sold and the total volume indicates housing demand.  The report is a strong predictor of future national mortgage origination volume and for near term spending for housing-related items.  Mortgage origination has reported negative increases the last two weeks so it is expected that tomorrows report will come in low.  Colorado Home Mortgage Loan rates should respond well but it will not make up all the ground lost today.  Not only will it not make up the ground lost today we may see Colorado Home Mortgage Loan rates get worse if inflationary concerns continue to dominate the Headlines. 

I do think its funny how Congress has required Oil CEO’s to come out and justify their profits.  What they should be working on is alternative solution to a problem that will not go away.  We have a Varity of options to explore and talking about whose fault it is will not solve the problem.  Colorado Home Mortgage Loan Rates will continue to see obstacles as long as oil continues to rise.  Oil is the biggest cost component in shipping which contributes a major impact to the ending price set on goods.  The increases felt in the market will translate to higher inflation.  We have a long way to go, and I do not have a solution to the problem, but I do believe we should do less talking and more doing.  For the sake of time I will limit my tirade to this one thought.  On rare occasions government intervention does help market systems and in the case of Oil something has to be done.  Those that voted in our current leadership party voted on the premises of change.  Well it appears to me that change has not happened.  What’s scary is that it does not appear that change will happen anytime soon.  Contrary to what these congressional people promised NOTHING HAS CHANGED.  If anything things are worse.  If we want change, maybe we need to re-look at who we voted in and think long and hard about voting someone else in. 

If you have time Check out www.coloradomortgagebanking.com/news for more insights on economic conditions.  Please call me with your Colorado Home Mortgage Loan questions.  God bless.

Daniel

Colorado Home Mortgage Refinance Loan rates are taking a hit first thing this morning in anticipation of the FOMC meeting minutes due to be released.  The primary reason for increased Colorado Home Mortgage Refinance Loan rates this morning stems from the lack of volume currently trade on the Mortgage Backed Securities floor.  The FOMC minutes are released at 2:00 PM EST on pre-scheduled days. Minutes are prepared to provide the necessary information to Congress and the public on policies and actions of the FOMC. The summary description of economic and financial conditions contained in these minutes is based solely on the information that was available to the Committee at the time of the meeting. The minutes of each meeting of the Federal Open Market Committee are made available a few days after the next regularly scheduled meeting. For example, the minutes of the first meeting of the year are released a few days after the second meeting of the year.  It is what the FOMC says in these minutes that will impact the direction Colorado Home Mortgage Refinance Loan rates will go.

We have implemented a LOCKING strategy over the last couple of days, and we are still advocating clients to LOCK.  5.75% is the right pricing point to lock at the moment as it appears rates may climb a bit today and tomorrow.  We may even see rates change a bit over the next couple of hours if the Mortgage Backed Securities Market continues its downward pricing trend.  Remember that we have an inverse relationship with the price of bonds and Colorado Home Mortgage Refinance Loan rates.  When Bond prices drop Colorado Home Mortgage Refinance Loan rates increase.  The opposite is said when bond price go up.

Here is a look at the Mortgage Backed Securities market so far.

This is a graph I monitor everyday and it is simple to see when the trend is below 0.00 Colorado Home Mortgage Refinance Loan rates are expected to go up.  If  the trend is above 0.00 it is safe to assume that Colorado Home Mortgage Refinance Loan rates will do down.  The trick here is to determine how the outside influences will move this graph.  If we have poor economic data coming in the graph will trend up if the economic data being released comes in better the expected the graph will drop.  This in a nutshell is how Colorado Home Mortgage Refinance Loan rates are expected to go up and down over time.  Our job is to get in about 12 hours before that happens and predict the direction.  More importantly we take the overall trend and focus on where it may go in the long run.  Its tough to determine where Colorado Home Mortgage Refinance Loan rates will go, but not impossibleJ

We have Jobless claims being released tomorrow and New home sales on Thrusday.  Both these reports will impact the market and at the momement I believe both reports will show negative economic data.  This should mean that Colorado Home Mortgage Refinance Loan rates should not spike too much this week, but the will not improve to a point where FLOATING makes sense.  If you have not LOCKED in your Colorado Home Mortgage Refinance Loan rate yet then LOCK.  The Risk/Reward will not pay off in the long run.  Please call me with any of your Colorado Home Mortgage Refinance Loan rate questions.  Also check out my other site www.coloradomortgagebanking.com/news when you have time.

Daniel

Colorado Mortgage rates saw slight improvements on today’s economic reporting.  We had two reports both reporting on the same subject material, inflationary pressure.  PPI and Core PPI were both released today.  These reports create movements in the Mortgage Backed securities Market and both impact Colorado Mortgage rates.  The Producer Price index for last month showed a 2.0% positive growth increase in pricing.  The expectation was 4%, signaling a lower then expected inflationary number.  This was very good news for Mortgage Backed Securities and allowed Colorado Mortgage rates to see some improvements on the day.  However, with the good news came some bad news, when the Volatile Energy and Food components were taken out of the data, Producers Pricing Index came in at 4% whish was 2% higher then expected.  All in all a very mixed day as it relates to the economic data released on inflation. 

Producer Price Index measures the change in prices, paid by producers, for a fixed basket of capital and consumer goods. It also measures the change in prices received by the manufacturing, mining, agriculture and electric utility industries. The “core” PPI excludes the volatile food and energy sectors and gives a clearer picture of the underlying inflation trend.  Economists pay the most attention to the PPIs for finished goods, intermediate goods and crude goods. The PPIs measure inflation of prices on the producers’ end and often that inflation gets passed onto the consumer and CPI. Inflationary pressures seen in PPI can help predict future pressures on consumer products’ prices. As a general rule, higher inflation is negative for bond markets.  Inflation creates a devaluation of current bonds which causes bond price to decrease and Colorado Mortgage rates to increase.

The mixed economic data, though important, was not the market mover for today.  The Market mover came as a result of poor stock performance.  The stock market lost some ground today and most experts believe that the stock market is still a little over valued.  This over valued belief creates some concerns for investors, which pushes portfolio strategies to focus on bonds.  We will continue to have a LOCKING recommendation for Colorado Mortgage rates at least until tomorrow afternoon.  Rates are looking good and if you can get below 5.75% then jump all over it.  For .5% cost today, I can actually get your 5.5% which means that we may have a new locking floor established by the end of the week.  We will need to watch rates, but anytime you can get a Colorado Mortgage rate at 5.75% or better you will ultimately be on the winning side of your rate lock.  If you have Colorado Mortgage Rate questions please feel free to call me.  In the mean time have a great evening.  Don’t forget to look at my other article at www.coloradomortgagebanking.com/news

Daniel

 Colorado Home Mortgage Loan rates will be impacted by tomorrows Core PPI report.  PPI measures the change in prices, paid by producers, for a fixed basket of capital and consumer goods. It also measures the change in prices received by the manufacturing, mining, agriculture and electric utility industries. The “core” PPI excludes the often-volatile food and energy sectors and gives a clearer picture of the underlying inflation trend.  Colorado Home Mortgage Loan markets watch this closely because when inflation goes up the value of their bond drops.  When bond values drops the market develops an inverse relationship between bond prices and interest rates.  The inverse relationship causes Colorado Home Mortgage Loan rates to go up as bond prices go down.  Core PPI does exclude food and energy, but oil still makes its way into the numbers.  When Oil prices are high, the cost of shipping increases.  When the cost of shipping is up the cost of goods naturally follows.  Higher priced goods translate into higher priced products sold to the consumer.  The end result is INFLATION.  No way to avoid it, Colorado Home Mortgage Loan rates will always have negative reactions to inflationary pressures.  We do have a little bit of hope as it relates to PPI and that is CPI.  CPI which was reported a week ago came in lower then expected.  These two reports have similar characteristics and normally run in the same patterns.  Even though CPI came in lower then expected, I really have no guess on where Core PPI will come in at.  Normally I would predict a higher then expected number, however because Consumer Price Index came in lower then expected it might be safe to assume that PPI will do the same.  However I do not want to speculate, because everything else points to a higher then expected PPI number.

So Far today’s Mortgage Backed Securities market appears to be light in trading, but the price of bonds are on their way up.  This is good news for Colorado Home Mortgage Loan rates.  I am hoping that we are seeing some insider trading going on in anticipation of tomorrows PPI report.  It could also mean that we have some investors that lack the confidence in trading stocks today.  Regardless of the reason, Colorado Home Mortgage Loan rates do appear to be improving for the moment.  I definitely recommend LOCKING today the risk/reward is not worth floating through tomorrow.  Now if you are risk taker and PPI comes in low then you will see at least an 1/8^th better on your rate going into Wednesday. 

Today the only economic report we had was the Leading Indicators report which came in higher then expected.  Experts predicted a -.1% growth rate when in fact we had a Positive .1% increase.  This by its self had no impact on Colorado Home Mortgage Loan rates.  The Leading Indicators report is composed of ten indicators designed to forecast the strength of the economy six to nine months into the future. The ten indicators are picked from different parts of the economy and are chosen because of their relevancy and accuracy. They are each given equal weight when applied to the composite index.  The LEI can predict peaks and troughs in the economy but because many of the indictors are released individually before the LEI composite index is released, market rarely watch the report very closely.  Some of these indicators include but are not limited to; consumer price index, Hotel Occupancy Rates, total imports, tourist arrivals, and more.  These numbers give economist a basic understanding on the direction the economy is heading.  You can see why Colorado Home Mortgage Loan rates can be impacted, but it is the individual reports like Consumer Pricing Index which is released before this report where the real impacts are felt.

To get a basic understanding on the direction of Colorado Home Mortgage Loan rates visit www.coloradomortgagebanking.com  until then please call me direction for any of your Colorado Home Mortgage Loan questions.

Daniel

Colorado Online Mortgage rates hit a point today where Locking made sense.  We had two Economic reports coming out today that made movements in the market.  Colorado Online Mortgage rates dropped as a result and 5.75% became available without any cost to the borrower.  The benefits that the decreased Colorado Online Mortgage rates had on the market were short lived and by the end much of what we gained early on where lost to profit seekers.  Profit seekers are investors who sell and trade bonds in a short term cycle.  Often they will enter the Mortgage Backed Securities market buying bonds slowly as the price drops, and will sell immediately the second the price point hits into profitable ranges.  Depending on how many profit seekers we have can create and artificial high and low point in the market.  I believe we saw a little bit of this late today.  The Mortgage Backed Securities market found the price of bonds dropping due to the overwhelming supply being offered into the market.  This caused much of the gains created from the poor performing economic data to go away by close of business today.  We will continue to push a lock recommendation while rates maintain the 5.75% range, make sure there are no additional costs to getting this rate. 

The market movers today came from two reports, Housing starts and Consumer Sentiment.  Housing starts came in higher then experts predicted, which would normally be bad for Colorado Online Mortgage rates.  The higher then expected numbers normally indicate that housing and mortgage volume will be high, which in return means that our economy is moving along as expected.  Lower numbers indicate less spending and in return put investors in a conservative buying mode.  The housing numbers were high, but the numbers were inflated a bit by multi-family units.  It appears that the actual Single Family Housing numbers fell, while Multi-Family permits increased.  The increase in the Multi-Family permits out weighted the Single Family Housing decreases, which caused the data to report better then expected growth in this section.  Colorado Online Mortgage rates should have reacted negatively, but the fact that Single Family Housing numbers decreased again did not sit well with aggressive investors.  We should also note that we are at 50% of what housing numbers were reporting back in 2005.  We have a long way to go in this data, before we can say the data was positive.

Consumer Sentiment also came in and this number came in at a 28 year low.  Consumer Sentiment  is used to gain insight into possible future consumer spending. It is almost identical to consumer confidence but it has two readings per month, preliminary and final readings. The consumer expectations portion is used for the leading economic indicators index.  This index is due out on Monday.  The numbers were so poor that it raises real concerns about what the people in the economy really think, and what their buying habits will be in the months to come.  If buying is low then returns are low.  When investors see low returns they tend to want to spend money on safer investments.  This created some real volatility in the Mortgage Backed Securities market this morning and caused Colorado Online Mortgage to drop.  When the drop took place our office went to work locking in loans not currently locked.  At this point we are pleased to say that all loans currently submitted are locked at rates at or below 5.75%.   If you have a loan somewhere else I would make the call to see if it is locked and if not go ahead and lock it.   If you have some time Check out www.coloradomortgagebanking.com/news for some of the basic Float/Lock recommendations.  Best of Luck and God Bless.

Daniel