Colorado Home Mortgage Loan

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.

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

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. 

The Colorado home loan market saw very little change in rates today and it will be interesting to see what Colorado home loan rates will do tomorrow.  I believe that these rates will be impacted by what investors know about the up and coming economic data due out at the end of the week.  Colorado home loan rates will decrease if the news turns out to be negative and obviously rates will increase if the news is positive.  I have addressed this issue in my previous blogs so tonight I would like to take a minute and talk about what is going on in the Political arena.  It is important to see what our future leaders are talking about doing to improve what the media has labeled the Mortgage Crisis.  Mortgage Crisis is an interesting term used in the media, obviously we have an issue in the market today but Crisis not sure if I would label it that.  Did you know that although default and foreclosure numbers are up, that they still account for a very small portion of total loans currently in the market?  For example most Colorado home owners currently holding a Colorado home loan continue to make their payments on time and will be making their payments on time as expected.  Both Political parties have promised some drastic measure to help support the portfolios which were underwritten by lenders with lets say ‘Loose guidelines”, and because of this, lenders have put credit ratings on these portfolios at risk.  Like any other election year it is amusing to see that each party has a strong idea of what needs to be done, but both parties seem to be deliberate in making their opponents solutions appear to be less then favorable.  I want to believe that there is truth to both parties and that these parties should focus less on the disagreements and more on what they do agree on to find the right solution.   Colorado home loan mortgages like any other mortgage in the U.S. requires some type of guarantee in order to attract investors back into the Mortgage Backed Securities market for the long term.  It has been proposed by congress that the government should guarantee these loans and offer investors the difference on any shortage that results in foreclosure. Obviously this will have a positive impact for investors.  The government already has a program  in place that guarantee’s loans for banking institutions.   FHA loans have been structured to do just that for decades and theFair Housing Administration continues to guarantee these loans to the banks that offer and service them.  FHA programs historically offer premium rates to Colorado home loan transactions because of the guarantee.  Though the concept proposed by Congress sounds good ultimately like anything else we pay for it.  What this will do is add additional risk to an already risky Colorado home loan portfolio and future interest rates in this program will drastically increase.  We are already seeing these increases as FHA loan limits have increased.  These FHA increases were initiated in the Economic Stimulus package and initially were rejected by lenders.  Lenders have now begun to accept the new loan limits but remain very cautious and have added about a .75% interest rate increases for these Colorado hom loan programs.  Over the years FHA loans have proven to be a great vessel for people that stuggled to get premium rates in order to qualify for a home.  These loans were specific to people that had good credit intentions and had their credit under control for an appropriate period of time.  Home ownership instantly increased with the introduction of FHA and has allowed the right people to buy.  If Congress is succesful in implementation  a program that will guarantee high risk loans, FHA rates change for the worse over night. This will not have a good long term effect and ultimately will be a bigger problem then solution.  I don’t have a simple solution for what would help the Colorado home loan market today, but simple economics taught me that the market will ultimately work out the problem itself and adding layers of government bureaucracy to anything forces the market out of alignment.  I know that their  intentions are good but in the long run this will prove to be a liability.  The responsibility for guaranteeing these Colorado home loans should fall on the lenders that approved to do these Colorado home loans in the first place.  If it causes lenders to close their doors then so be it.   Free markets reward good business practices and penalize poor buisness choices.  We still have plenty of lenders that do business the right way to make it through these difficult times.  I would love to be in a business where every time I make a mistake I have the guarantee of the government to pull me through.  Lenders are beginning to learn from the mistakes made in the past and underwriting requirements have tightened up.  We will see these new mortgage portfolios perform well and investors confidence will come back hopefull sparking demand for mortgage backed securities.   This will only mean good things for Colorado home loan programs as interest rates decrease.  I think it is good that have obstacles to overcome it will allow the market to be stonger I just hope that we do not fall back into old habits.    I hope that this was helpful and remember if you have Colorado home loan questions simply send me a comment and I will address each question.   Check out my other blog site when you have time. I write different information on both and you may find that Colorado home loan information useful as well.  Check out www.coloradohomemortgageloan.net/news Have a great evening and God bless.

I want to go on record to say I am not an english professor but a Colorado home loan provider.  I have my MBA from UCCS and have made studying monetary policy a high priority.  How else can I offer the best Colorado home loan options if I don’t have the knowledge to back it up.  I will be posting news information at least once a day, so that all my clients can get up to date information on the markets and how Mortgage Backed Securities will impact your colorado home loan options.  The big news today came in the announcement that J.P Morgan was buying Bear Sterans a large provider of Mortgage Backed Securities.  The federal reserve has stepped in to help J.P Morgan in its buy out to help avoid any major obsticles in any home loan options.  Colorado home loan choices will continue to be maintained at its current rates.  We will probably continue to see activity in the bond market incresing the price of the bonds and decreasing the rates charged on Colorado home loan options this week.  Inflation continues to breath its unhealth breath on the markets and typically will drive interest rates up when it is the center of attention.  The Consumer Price index  that came out on Friday put to rest most of the inflation concerns for awhile.  Colorado home loan rates have been moving down for about a week and we should continue to see Colorado home loan rates coming in better as the week progresses.  Stay tuned for any major news like the Federal Funds rate decreasing tomorrow.  we are projecting a full 1.0% decrease in the Federal Funds rates to help liquidity issues in the market.  Statistically everything points to us being in a recession and nothing looks worse for the Federal Reserve then a recession, so they are doing all they can to pull us through.  Last weeks burst of funds in to the market helped drive Colorado home loan rates to this years all time low and the continued bad news in the economy will continue to drive Colorado hom loan rates down.  If the media starts to focus on inflation as its biggest economic foe we will begin to see investors over react and Mortgage backed securities may start taking a hit, increasing Colorado home loan rates.  The key here is what will win the battle inflation news or bad economic news.  If inflation wins then Colorado home loan rates go up.  If the bad economic news wins Colorado home loan rates drop.  Right now we are entering into the 2nd half and Bad economic news is winning.  Leave it up to our referees the Federal reserve to find a way to even the playing field by decreasing short term interest rates and increasing cash into the economy.  When this happens inflation is not far behind.  In the mean time Colorado home loan rates should continue to drop today and into tomorrow, keep your ears and eyes open we may need to lock your rate soon.  Recommendation:  Float