Colorado Home Mortgage Loan

Jobless Claims pretty much came in as expected.  You can get a detailed explanation of what this report is and how it impacts the market by reading yesterday’s article.  The data released today indicated that Jobless Claims were about what was expected.  The Consensus on this was around 370K and the actual number came in at 371K.  This is also good news for Mortgage Backed Securities, which in return drives Colorado Home Mortgage Refinance rates down.

Industrial Production also had worse then expected data released today. Industrial Production currently shows contraction in the economy and it was expected to do so again today.  Experts put the contraction or negative growth factor around .3%.  When the data was finally released the actual negative growth factor came in .7% which is significantly lower then expected and again created more demand for Mortgage Backed Securities.  Colorado Home Mortgage refinance rates saw continued improvement after the release of this report.

Colorado Mortgage rates will see a lot of volatility tomorrow.  We have a variety of economic reports to be released and so far the economic data appears to be sending mixed reviews.  You can learn a lot more about what direction the market appears to be heading and the momentum driving the market by visiting www.coloradomortgagebanking.com/news This site will go into detail about the economic reports being released and how it impacts Colorado Mortgage rates.  Here is the data so far:

Retail sales came in lower then expected which normally drives Colorado Mortgage rates down, but the report is broken down into several sections.  These sections are looked at separately and by removing the auto sales component, retail sales actually came in a lot higher then expected.  This was one of the reasons Colorado Mortgage rates jumped up as much as they did over the last 48 hours. The Retail Sales Index measures the total receipts of retail and food sales. Retail sales include durable and non-durable merchandise sold and services and taxes incidental to the sale of merchandise. Sales are often viewed ex-autos, as auto sales can move sharply from month-to-month. It is also important to keep an eye on the gas and food components, where changes in sales are often a result of price changes rather than shifting consumer demand. This is important because it is the timeliest indicator of broad consumer spending and is adjusted for seasonal variations and holidays. Big revisions to reports can be made even to old reports from several months past. Fluctuations in sales figures can occur because of price changes and not due to changes in consumer demand. Strength in Retail Sales implies a strong economy and is usually negative for Colorado Mortgage markets.

Today we saw CPI reported and it did come in better then expected.  The news definitely created some confusion in the market, because everything indicated inflationary pressures to come in high.  The better then expected data helped Colorado Mortgage rates, but not enough to make up all the ground lost in the last 3 days.  Consumer Price Index creates a lot of movement in Colorado Mortgage rates.  It is one of the biggest inflationary reports and tends to be watched very closely by investors.  The report came in .1% better then expected, which is great news for Colorado Mortgage rates.  Colorado Mortgage rate improved slightly on the news today and appears to be making up lost ground.  CPI measures the price of a predetermined set of goods and services purchased by urban consumers (80% of the population). CPI is the most widely cited inflation indicator and is used to calculate cost of living adjustments for government programs. CPI tracks prices of goods in several main categories including food and beverage, energy, housing, apparel, transportation, medical, education and others. Excluding food and energy, which are the more volatile components, gives what is commonly referred to as the “core rate.”  CPI is used to gauge changes in inflation and markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the 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 bond market which causes Colorado Mortgage rates to climb.

Colorado Mortgage rates should see even more movement tomorrow when Industrial Production and Jobless Claims data is released.  Both reports tend to make the market react depending on the data released.  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.  

Industrial Production measures the change in the production of the nation’s factories, mines and utilities as well as a measure of their industrial capacity and the extent available resources among factories, utilities and mines are being used. The level of industrial production divided by the level of industrial capacity gives the capacity utilization rate. The manufacturing sector accounts for one quarter of the economy and the capacity utilization rate shows how much factory capacity is in use.  Industrial Production is one of the major reports measuring economic activity. Stronger economic growth typically leads to higher inflation, so Colorado Mortgage markets usual react negatively to stronger than expected economic growth. 

Thanks for reading along and call me with your Colorado Mortgage questions.

We are seeing some volatility in the Mortgage Backed Securities market this morning and Colorado Home Loan rates appear to be holding steady for the moment.  There appears to be a lot of buzz on the Hill related to a variety of FHA sponsored bills which were approved by the house yesterday.  The Frank bill approved yesterday in the house has proposed a $15 Billion dollar bail out on homes currently facing Foreclosure.  The bill would forgive the balances on Colorado Home Loans that exceed the current property prices.  These lenders would then refinance the Colorado Home Loan at a balance closely reflecting actual value.  The difference would be paid out by the government.  Now on the surface it appears to be a good program, especially if your owe more on your home then it is worth.  Colorado Home Loan programs have not faced the same obstacles as other loans in other states.  Florida, Nevada, Michigan, and California just to name a few have seen home prices drop more then 20% in the last year and many people trying to refinance just can’t because of the current property value issues.  Colorado Home Loans based in parts of Denver are facing similar issues.  These Colorado Home Loan programs were designed to be refinanced in two years with the hope that property values would go up.  Instead many consumers are faced with Colorado Home Loan programs that have adjusted to a point where the home can no longer be afforded.  This is a major issue in our foreclosure market today and though I believe the bill has good intentions, ultimately the results will not favor the market.  I continue to support my philosophy that the Government should not intervene in any market activity.  Normally when you have governments trying to push markets in one direction or another, the market tends to react poorly.

Colorado Home Loan programs were underwritten by a variety of Lenders understanding the risk associated with them.  The lenders who approved the loans should be held accountable for the type of Colorado Home Loan programs they approved.  We are in a very tough market which will recover.  We simply need the markets to resolve the issues on their own.  Only when you have the absence of outside influences will the market correct itself.  Colorado Home Loan rates do appear to be holding steady around the 5.75% range we LOCKED in at yesterday, but it appears that we may be heading for some tough days ahead.  We will continue to recommend Locking and at this point you should not be getting quoted anything above 5.875%.  If you have a Colorado Home Loan rate above that please call me and give me a chance to see what I can do for you.  In the mean time have a great weekend and a special happy Mothers Day to my Wife, We just found out yesterday that we are expecting baby #2.  Jaimee I love you.  If you want to read more blog information go to www.coloradomortgagebanking.com select blog #1

Daniel 

So far the mortgage backed securities market has responded well to the Economic Reports released today.  At 1pm Eastern Time we do expect to see some volatility in the Colorado Home Equity loan market as reports come in confirming the progress of the 10 year treasury bond auction currently taking place.  Colorado Home Equity loan programs are primarily impacted by the Federal Reserve and the current Prime Rate.  What I will be referring to today will be the fixed rate programs that move in direct relation to Colorado Home Mortgage Loan rates. 

We had the release of two Economic reports today, Productivity data and Pending new home sales data.  Both reports are viewed to be low priority in the movement of Colorado Home Equity Loan rates, but both certainly have impacts.  If you are looking for a more detailed explanation of these reports look at the last post which should answer most of your questions.  Anyways Productivity did come in higher then expected, but following close behind was economic data indicated lower then expected inflationary numbers.  These numbers are significant because of the influence Oil has had in each inflationary report released so far.  Inflation has been perceived to be a lot more heated then what is actually showing up in the numbers.  This is also important because Oil is trading at extremely high prices.  The fact that inflation appears to be lower then expected, tells us that spending is down.  This may prove to be beneficial to Colorado Home Equity Loan rates in the future, but right now investors continue to be skeptical.  We also had information being reported on Pending Home sales, which reported a negative growth number.  The negative numbers did however come in line with current expectation, sending Colorado Home Equity Loan rates into another holding pattern.  The last thing today to impacting Colorado Home Equity Loan rates today will be reports showing the 10 year treasury auction activity for the day.   These numbers have not been released yet but looking at the live feed for Mortgage Backed Securities it appears that the numbers will be favorable.  This favorability will be good for Colorado Home Equity Loan rates.  Remember we are looking for a LOCK recommendation around 5.75% with no points, we hope to have that in place soon.  Stay tuned for more Colorado Home Equity Loan information as economic reports continue to be released.

Tomorrow we do have two more economic reports to talk about, and both these reports will have impacts on Colorado Home Equity Loan rates.  The Bank of England will be making its bi-quarterly announcement tomorrow on current lending rates for the European markets.  Obviously the majority of investors we have in our Mortgage Backed Securities market come from international investors.  These investors influence Colorado Home Equity Loan rates more then any other buying group currently participating in the bond market.  When The Bank of England announces increases in interest rates, their in house investments become more attractive.  The international investors will pull money out of our market and begin to dump it back into their own markets.  This said, we do not expect any surprising news from the Bank of England, but you never know.  Finally, we will have the Jobless Claims report announced around 830am eastern time.  This report is important because it signals increased demand on wages. 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 Colorado Home Equity Loan rates.  We will update you as soon as the reports are out. 

In short, we had light reporting day and Colorado Home Equity Loan rate appear to be right where we left them yesterday.  The market has shown signs of improvement all day and at last glance continues to see improvements, which is good news for Colorado Home Equity Loan rates.  Though we saw improvements, rates still appear to be at 5.875%.  We are seeing movements in the market that may have Colorado Home Equity Loan rates hit 5.75% sooner the later.  The issue we are seeing is that investors are still pricing their bonds very conservatively, but we may be able to get the 5.75% at no cost in the next day or two if the trend continues.  We are staying on top of any breaking Headline news mainly because of the impact that would have this week on the Mortgage Backed Securities market.  With economic reports at a minimum it does not take much to have Colorado Home Equity Loan rates moving in the wrong direction.  I have additional information available at www.coloradomortgagebanking.com.  Give me a call with any of your Colorado Home Equity loan questions.

Daniel

Colorado Home Mortgage Refinance Loan rates appear to be holding steady today as economic news appears to be light.  We had only one Economic Report to speak of, and though it came in high, it did not impact the market much.  ISM Service index reported higher today then expected, which typically moves Colorado Home Mortgage Refinance Loan rates in the wrong direction.  This report is monitored by the Federal Reserve and does have inflationary implications.  You can read more on that at www.coloradomortgagebanking.com/news

Here are a few smaller economic reports due out this week; Productivity, Pending Home Sales Index; Jobless Claims; and Trade Balance.  All of these reports will have some impacts on mortgage rates, but the biggest mover this week will be the stock market.  Colorado Home Mortgage Refinance Loan rates move in direct correlation with stock market gains or Losses. 

High Productivity allows firms to produce more with an equal amount of labor. If fewer workers are needed, the inflation pressure on wages will be lower. The Productivity report is not a timely report as it is only released quarterly and most of the information in the report has already been released in other reports. The report does provide the best overall picture of the economy’s efficiency.  This report is projected to come in low around 1.2%, anything higher can cause Colorado Home Mortgage Refinance Loan rates to rise.

Pending Home Sales are important but the name pretty much sums up what the report will say.  Right now we are projected to have a negative growth in this area, but that is not new news and as a result Colorado Home Mortgage Refinance Loan rates will not be impacted by this report.   Jobless Claims, which is actually due out on Thursday not Friday like I reported yesterday, will have this week’s greatest influence on Colorado Home Mortgage Refinance Loan rates.  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.  High Jobless Claims signals poor economic conditions.  Poor economic conditions cause investors to invest more in securities and in return will cause Colorado Mortgage Refinance Loan rates to drop. 

I know it is a lot to digest so I will summarize all my blogs within the last paragraph.  Reporting this week will be low as it relates to economic reports.  However the news being report will have some impact, but not as much impact as the stock market itself.  Colorado Home Mortgage Refinance Loan rates will move with the stock market this week.  Since most of the 1Q reports have already been released it appears that this week should go slow.  Current Colorado Home Mortgage Refinance Loan rates are trending right around the 5.875% range with no points.  We are keeping our Lock recommendations at 5.75%.  Please call with any questions you might have on your Colorado Home Mortgage Refinance Loan programs.

Colorado Online Mortgage rates were impacted by a variety of reports today.  Unemployment rate, Non-Farm Payroll, and Factory orders were all released earlier this morning.  These reports were expected to come in low which was being projected in the market before hand.  When the data finally did come in it hit the market hard.  No one expected to hear the positive data released on each of these reports.  Unemployment came in better then expected, but Non-Farm Payroll and Factory orders just blew away the projections and sent investors wondering if we are starting to see signs of recovery.  Investors are sooooo emotional when it comes to reading between the lines.  Payroll numbers came in better then expected, but expectations had job losses at 75K.  So obviously a 20K jobs lost is much better then 75K jobs lost.   We need to remember that we are still contracting as it relates to our Economy.  Colorado Online Mortgage responded negatively to these reports, but I believe we will see Colorado Online Mortgage rates rebound by the end of the day.   We still believe that there will be improvements in Colorado Online Mortgage rates in the days to come.  If you have not locked in your Colorado Online Mortgage rate yet then FLOATING will be my recommendation.  

We are looking to see Colorado Online Mortgage rates to improve beginning next week.  Headline news will be watched closely and Mortgage Backed Securities will certainly react to any activity reported in the headlines.  I have additional information on www.coloradomortgagebanking.com/news if you are interested in getting more details on today’s reports.  Rates are at 5.875% if you are looking to lock your Colorado Online Mortgage.  We believe that FLOATING is your best options and will implement a LOCK recommendation at 5.75%.  Stay tuned and be prepared to lock quickly.  Inflationary reports come out on Monday and this will definitely impact Colorado Online Mortgage rates.  Have a great weekend and God BlessJ