Colorado Home Mortgage Loan

Colorado Home Mortgage Loan rates will be impacted by a variety of Economic reports due out this week.  We saw some nice improvements last week and we are hoping that the momentum will continue to drive Colorado Home Mortgage Loan rates down.  We are hitting some resistance in the MBS market and you can learn more about that at www.coloradomortgagebanking.com/news.  We will focus this site on the news that will impact your Colorado Home Mortgage Loan rates today.  We only had one report today, which was the Chicago Purchasing Managers Index.   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.  The Chicago PMI report came in at 49.6 which still indicates contraction in production however it does appear that we may be hitting the turning point soon.  We can only contract so far before expansion becomes inevitable.  Colorado Home Mortgage Loan rates did not move much from the news as it basically came in close to expectations.  With no surprises in the report investors looked to the headlines to make their buying decisions.  The stock market did increase a bit and because of those gains MBS did take a bit of a hit.  Colorado Home Mortgage Loan rates did jump up about .125% by close of business. 

I do not think that the increase seen today will continue unless something unexpected happens in the next day or so.  Most of the Economic reports being released this week will have minor impacts on Colorado Home Mortgage Loan rates, and will not be enough to break any new barriers.  Most of the decreases felt in Colorado Home Mortgage Loan rates over the last couple of weeks have found its way into the Rate Sheets today, and LOCKING would be a good idea.  Those that think inflationary pressures will not creep into the news might find this week’s economic data favorable to Colorado Home Mortgage Loan rates.  We have a variety of reports due out that will create some movement.  The two reports to watch out for this week are tomorrows ISM index and Thursday Nonfarm Payroll.  These are the only two reports that could break some of the barriers we are seeing in the MBS market.

The ISM Manufacturing Index is a national survey of purchasing managers which covers such indicators as orders, production, employment, inventories, delivery times, prices, export orders, and import orders. The ISM provides a composite index of national manufacturing conditions.  Manufacturing is an important sector of the economy and the ISM index is one of the two primary national measures (the Chicago PMI is the other). Like the Chicago PMI anything reported below 50 indicates a contraction in the market.  If the Chicago PMI is a preview of what is to come in the ISM Manufacturing Index, we will see this report indicating some contraction in the market.  Colorado Home Mortgage Loan rates should decrease a bit if the report indicates contraction.  How much Colorado Home Mortgage Loan rates will improve depends greatly on what the report says.  I don’t expect any surprises in this report and because of that, do not expect any real movement to play out in the Colorado Home Mortgage Loan rate market.

Non-Farm Payrolls is estimated based on a survey of larger businesses measuring the number of paid employees working part-time or full-time in businesses or for the government.  This report typically has a big impact on Colorado Home Mortgage Loan rates, because on the inflationary implications that come from the report. The Non-Farm Payroll data is the top number of the Employment Report, one of the most highly anticipated pieces of economic data. The headline figure is often a major market mover with the labor market a strong predictor of the strength of the economy. The Unemployment Rate is obtained from a different data sample, and together the two reports provide the most comprehensive picture of the labor market.  This could be the information we need to break through the price Ceiling currently being felt in the market.  This also assumes that we do not see any additional movement in Colorado Home Mortgage Loan rates until then.  Inflation is a hot topic and if the reading comes in worse then expected, much of the inflationary fears revolving around this report will dissipate (for the time being).  Colorado Home Mortgage Loan rates will see some nice improvements and we might at that time get below the 6.0% range.  We need to weigh out the risk/reward in any decision to float or Lock.  We have hit a low point for the last couple of weeks and we will need the economic data to indicate something that is contradictory to what experts are say.  Which is that inflation is under control.  Only if this happens will rates improve to a point where floating makes sense.  Its like betting on the right horse, about a 1 in 10 shot, because of this if you are not risk adverse, then LOCKING would be a good idea.

Please call me with your Colorado Home Mortgage Loan rate questions.  I would enjoy earning your business.

Daniel

Colorado Home Mortgage Loan rates take another hard hit today.  New and old concerns related to inflation continue to make the headlines and Colorado Home Mortgage Loan rates are reacting negatively towards it.  The only major economic report released today were the Pending Home Sales numbers which came in considerably higher then expected.  Colorado Home Mortgage Loan rates already impacted by inflationary concerns saw an even greater loss when the report was released.  Colorado Home Mortgage Loan rates jumped up about .25% today and about .5% since last week.  Most Colorado Home Mortgage Loan lenders have hedged their pricing to a point where Locking just does not make sense.  The fear hear is how bad will inflation be, and to what extent will it play in the Colorado Home Mortgage Loan market.  Most experts believe that Colorado Home Mortgage Loan rates will continue to rise on concerns that inflation will increase due to the continued price increases related to oil.  So if you are closing in the near future and have not Locked in a rate then LOCKING may be a good idea.  I would recommend a LOCK today at 6.0% if you can still get that rate.  Colorado Home Mortgage Loan rates do have some room to drop especially if investors regain some confidence lost during current inflationary concerns. 

Colorado Home Mortgage Loan rates are impacted by economic conditions.  One condition not mentioned in awhile, but appears to be a perfect explanation to the economic status of our country today is “Stagflation”.  Colorado Home Mortgage Loan rates always do well during bad economic times, but mixed in with inflationary pressures Colorado Home Mortgage Loan rates have no other direction to go then up.  Stagflation is an economic condition first proposed back in the 1970’s.  It is controlled by two principal contributors inflation and economic slow downs.  We are currently experiencing both these conditions and should be talking about managing our decisions based on lessons learned during our last “Stagflation period”.  Colorado Home Mortgage Loans are greatly impacted by monetary policy.  Monetary policy is controlled by the Federal Reserve.  The Federal Reserve has two major concerns on their hand, Inflation and decreasing economic growth.  Depending on what policy the Federal Reserve implements can and will create a negative influence on the policy not being enforced.  For example if the Federal Reserve fights inflation then they will jeopardize stimulating economic growth.  Like wise Federal Reserve policy to stimulate economic growth will negatively impact inflation.  Kind of a damned if you do and damned if you don’t. 

Colorado Home Mortgage Loan rates also react positively or negatively depending on the policies being implemented by the Federal Reserve.  If the Federal Reserve combats inflation Colorado Home Mortgage Loan rates will react positively.  Likewise several techniques used to stimulate economic growth, like increasing the money supply will have a negative result on Colorado Home Mortgage Loan rates.   Stagflation was last felt during the late 1970’s, and though the Federal Reserve recognizes the issues on hand, they are conflicted on how the resolve the issue.  Fishers concerns on inflation lead to a steep increase in Colorado Home Mortgage Loan rates today and appears to be his biggest concern, however Bernanke and the other Federal Reserve Board members all feel Economic stimulation should be their primary concern.  This is why we are seeing Colorado Home Mortgage Loan rates increase and it is also why we are in the making of another possible “Stagflation Period”. 

As I stated before Stagflation can result when and economy is slowed by an unfavorable supply shock, such as an increase in the price of oil hear in the U.S. As inflation increases Economic conditions tend to worsen.  When the Economy faces times of uncertainty and an obvious decrease in production monetary policy is used to kick start the sluggish economy.  When the Federal Reserve jumps in and begins to increase the supply of money they increase the pressure centered around inflation.  As a result inflation increases even more.  The increased inflation causes Colorado Home Mortgage Loan rates to go up. Stagflation only becomes a problem when the marginal impact on Policies used to combat the economic issues cause more harm then good.  Generally the Federal Reserve can either stimulate the economy or attempt to rein it by adjusting interest rates making it cheaper to borrow money.  Adjusting the rate down tends to improve growth but it also increases the pressure on inflation. Adjusting the rate up tends to fight inflation but it hinders economic growth. During periods properly described as stagflation both problems co-exist. Major economic conditions of unusual proportion will have already created near-crises on both fronts before stagflation can set in.  I don’t have a solution to where Colorado Home Mortgage Loan rates will go but our government needs to improve on policy decision especially during such a fragile moment in time.  Let’s not have history repeat itself or we may find our unemployment rate hit 10% and Colorado Home Mortgage Loan rates will hit 10%.

Now with that said, I am confident that the Federal Reserve will do the right thing for the best long term results.  Now we may not like what they are doing, but so far they have shown no signs of repeating bad economic decisions.  Especially over supply issues in the money supply.  Call me with your Colorado Home Mortgage Loan questions and give me a chance to help you find the right Colorado Home Mortgage Loan.

Daniel 

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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 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 Home Mortgage Loan rates continue to be the center of attention for those buying homes in the near future.  I am asked constantly about how I determine where rates are going.  Simply put I make an educated guess based on the economic data and the live pricing feeds I have into the Mortgage Backed Securities market.  It is actually very simple to predict the direction Colorado Home Mortgage Loan rates will go.  If the Mortgage Backed Securities market indicates that the prices on bonds are increasing then the rate on Colorado Home Mortgage Loans will decrease.  Likewise, if the Mortgage Backed Securities price decreases Colorado Home Mortgage Loan rates will increase.  The economic data released into the market projects the state of the economy today.  If the economy shows signs of improvements Mortgage Backed Securities will drop in price.  The reason they drop in price is due to investors moving money out of safe Mortgage Backed Securities investments and into high risk stock investments.  Colorado Home Mortgage Loan rates will certainly increase when money is moved out of Mortgage Backed Securities market. 

Over the last 9 Months the economic news has been very negative which in return has put Colorado Home Mortgage Loan rates into a very pleasing price range.  It seems like everyone I talk to wants and expects to get their rate into the 5.5% range which has been the low points over the last 9 months.  We have experienced this low point about every 60 days or so.  It really depends on what the trend in the Mortgage Backed Securities market is and how investors are reacting to the economic data being released.  Inflation continues to be the negative influencer for Colorado home Mortgage Loan rates.  The mere fact that it is mentioned normally has Colorado Home Mortgage Loan rates moving in the wrong direction.  The key to locking is to figure out when the low point will happen before you actually close on your loan. 

So far we are trending around 5.875% which is still good for Colorado Home Mortgage Loan rates, but we certainly would like to get a little lower.  So far today the Mortgage Backed Securities market has not responded well and it appears at least this morning that investors believe that the Durable goods report will come in better then expected.  I am still not convinced and as I stated on my other blog www.coloradomortgagebanking.com today’s pricing trends normally predict what’s in store for the economic data being released the next day.  We will have to watch for a late day rally to see if any insider information makes its way into the market.  Rates will certainly be a little worse today, based on what I am seeing in the market.  Though rates will jump a bit we are still holding strong on our FLOAT recommendation, no need to overreact with the market.  If Durable Goods come in below expectations we will see some positive changes in the Colorado Home Mortgage Loan rate market.  Stay tuned I will update you on live market pricing as it happens. 

Right now the Mortgage Backed Securities market is not responding the way we would like.  On the news front Ambac posted a 1.7 Billion dollar loss.  Ambac is a bond insurer and losses with this company signals instability in Mortgage Backed Securities.  This will probably be the reason Mortgage Backed Securities take some hits today.  Colorado Home Mortgage Loan rates increased to its highest point in 6 months the last time a bond insurer company reported losses.  Today we will not see the news effect the market as much because of all the other turmoil we are experiencing in the stock market.  Company after company continues its lower then expected profit reports which will help minimize the decreases felt from Ambac news.  Stay tuned, today will be an interesting day.  We expect Colorado Home Mortgage Loan rates to improve over time, but today will not be that day.  Hopefully the economic data released tomorrow will push out the negative press on Ambac and help get Colorado Home Mortgage Loan rates back where locking makes sense.

Colorado Home Mortgage Loan rates should see some improvements this week.  I just got done looking at the Mortgage Back Securities market and we are right where we left off on Friday.  Friday proved to be a good day for Colorado Home Mortgage Loan rates, which showed most of its improvements on this morning rate sheets.  We do not have a lot of activity being released on the economic data side.  Our next big report will come in on April 24th, when Durable goods release its current numbers.  Today Colorado Home Mortgage Loan rates will certainly be impacted by volume and Headlines.  I discussed several of the headline topics at www.coloradomortgagebanking.com/news.  For now I will focus on the volume component.  Obviously when volume is down and supply is high investors will lower their price on Mortgage Backed Securities in order to stimulate buying.  Right now the market has seen mixed approaches and Colorado Home Mortgage Loan rates have seen some movement in both directions.  We expect that rates will continue this hourly up and down swing, but ultimately over the long term will see rates drop.  If Durable Goods come in lower the expected we should see some nice improvements through the end of the month.  Right now we are maintaining our FLOAT recommendation until something in the market sparks a must lock situation.  We need to keep a close eye on Oil.  Oil continues to be the commodity that can make or break the direction the market goes.  So far Oil companies have done very little to help the overall state of the economy.  This is evident in the astonishing profit growth each of these companies have had in the last 4 quarters.  Colorado Home Mortgage Loan rates will be impacted by the level of profitability made by these companies.  The cost of oil impacts the cost of production which in return impacts the cost to the consumer.  In short when oil goes up inflation tends to be on the rise.  When inflation creeps its ugly face into the Mortgage Backed Securities markets, investors begin to see their investments devalued and in return must offer a higher Colorado Home Mortgage Loan rate to compensate the difference.  If it were not for Oil prices we would probably be seeing some of the lowest Colorado home Mortgage Loan rates ever recorded.  Oil by itself does not move the market, but it does have an impact.  With that said everything else in the market signals better Colorado Home Mortgage Loan rates to come.  Keep watch and remember call me with any questions.

We had three economic reports come out today all of which appears to be good news for Mortgage Backed Securities.  The main thing to monitor will be volume.  If Volume is low then Colorado Home Mortgage Loan rates will increase until something stimulated activity in the market.  So far today that has been the case and Colorado Home Mortgage Loan rates are beginning to increase slightly.  This can also be a direct reflection on the volume created in the stock market over the last couple of days.  This trend will likely stop and Colorado Home Mortgage Loan rates are expected to recover next week.  Each of the reports today indicated that we are still in a bit of a mess as it relates to our economy.  Each report reminded us that we are not out of the woods and we still have work to do before recovery is recognized.  Jobless Claims came in as expected and showed that we are still extremely high.  Colorado Home Mortgage Loan rates should have responded well to the news and rates should come down a bit.  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.

Leading indicator report came out as expected today.  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.  This report basically give you the state of the economy and can show whether we are moving forward as a whole.  Colorado Home Mortgage Loan rates don’t typically move with this indicator, but it does give us some idea whether we are in a recovery state or not.

Finally the Philadelphia Fed Index is used to get a sense of the Manufacturing component which accounts for about 20% of our market.  The Philadelphia Fed Index is considered to be a good indicator of changes in everything from employment, general prices, and conditions within the manufacturing industry. Manufacturing is considered to be a precursor to future economic conditions and it lays the groundwork toward economic recovery. For example, in a poor economy if manufacturing starts to pick up there is an expectation that the economy will soon follow behind.  In short the reports don’t lie the economy still needs help in a bad way, and normally when the economy suffers Colorado Home Mortgage Loan rates show improvements. 

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

Colorado home mortgage loan programs got a bit of good news today.  The Fed’s issued two new economic reports both coming in lower then expected.  Colorado home mortgage loan rates have dropped a bit on the news, but the lack of activity in the market makes it hard to gauge exactly what kind of long term impact these reports will have.  Stay tuned on Monday and Tuesday to see if in fact  rates drop on Colorado home mortgage loan programs.  The first report issued early this morning had its importance tied to inflation.  I wrote a lot about inflation and how inflation impacts Colorado home mortgage loans on my other blog site: www.coloradomortgagebanking.com/news so I will not go into too much detail in this article.  The report I am referring to is the Personal income and outlays report which focuses on an individuals source of income, and total income, from month to month.  This report also indicates where the income is being spent.  If spending activity is high the concerns for inflation is high.  When inflation concerns are high Colorado home mortgage loan programs tend to see interest rates increase.  The good news is that this economic report came in lower then expected and actually reiterated what I have been saying for awhile, and that is that inflation is not as bad as investors would have us believe.  The second report came from the University of Michigan and it was the Consumer Sentiment Survey which basically illustrates a persons belief on what the economy is doing.   This report came in very low but not too much lower then expected.  It goes to show that as a society we continue to have our perceptions manipulated by the mass amounts of media experts all claiming to know exactly what the economy is doing.  Unfortunately most of them have a pretty good idea, but because bad news increases ratings, good news normally finds a back burner.  Make no mistake we have major issues in the Colorado home mortgage loan markets and will continue to see these issues over time, but we do have some good data to report.  The most important misconception is that inflation has gotten out of control.  When you look at historical data we are actually trending very low.  Investors have too high of an expectation for where inflation should be, and it is not as bad as they would lead you to beleive.  When investors figure out a way to overcome their fears and accept the facts as it is reported, Colorado home mortgage loan rates will improve.  The next misconception is that home sales are considerably down, actually new data and previously reported data all say home sales are exactly where they should be.  The problem with the data is that sales are compare today with some of the best home sale numbers of all time.  People are still buying homes we are just not breaking any new records.  The last part comes in the forecasts of Foreclosures, yes Foreclosures are high, but they still account for a very small portion of all loans issued.  Foreclosures are a natural part of doing Colorado home mortgage loan business and financial institutions understand and calculate a portion of their portfolios going into default.  The press has jumped on this news to indicate a catastrophic epidemic hitting middle America, and though it is bad, it is not nearly as bad as they would have you believe.  Hope this helps, my recommendation continues to be a FLOAT recommendation.  We will watch the markets for you closely to see what next week will bring.  In the mean time have a great weekend and God bless.

Daniel