Colorado Home Mortgage Loan

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

I am a pretty trusting person so from time to time when I see something come up that you need to be aware of I will write about it here.  Colorado homes will begin to flood the market again this summer season and two days ago we had an alarming thing happen in one of these Colorado homes.  I have never suggested to any of my clients to take pictures of any Colorado homes in the past, but one client did just that.  To our disbelief the owners of the house had swapped out the appliances.  The appliances that were put in after the fact, appeared to be less superior then the original appliances.  The sellers basically did a bait and switch and in doing so committed fraud.  Colorado homes are expected to remain in the exact shape that was agreed upon in the contract between the buyers and the sellers.  Doing something like this constitutes as fraud, and in the many years that I have been doing transactions for Colorado homes I have never seen this happen.  If there is any thought in anyone’s mind that this is some how OK, you would be wrong.  The seller of this home now will need to compensate the buyers for the loss of trust that took place, which will probably not happen.  The end result is that the buyers will be looking for another Colorado home and this seller will be required to put their house up on the market again.  It is a sad sad example of what people will do, and for what a $400 difference in appliances.  Colorado homes being listed this summer please remember to do the right thing and if there is any doubt on whether you are doing the right thing, odds are you will be better off not doing that.  God bless and have a great weekend.

Daniel

Going into the summer season we should see an increase in the number of Colorado Homes listed for sale here in Colorado.  I was sitting down at lunch today with an old friend currently trying to sell his home.  Like many other Colorado homes he has had it on the market for some time and has had to drop the price several times.  He was discouraged to say the least, a common fact for many Colorado homes currently facing the same dilemma.  There are so many different things that you can do to set yourself apart, and before making that next price change, try something different.  Colorado homes currently have a set fee for the buying Realtor and the listing Realtor.  Typically the total listing fee is 6%, 3% going to the buying Realtor and 3% going to the listing Realtor.  My recommendation is to increase the incentive being offered to the Buying Realtor.  Instead of 3% increase it to 4% or 5%, before making another pricing decrease on your home.  Before showing buyers Colorado homes for sale a Realtor will pull the information off of the MLS.  Once the information is pulled the Realtor goes through the data to ensure the Colorado homes meet the minimum criteria set by the buyer.  The realtor will also see the incentives being offered to sell that home and the incentive may be high enough to put your home at the top of the list of home to show.   Colorado homes will face many challenges this summer and as inventory increases so does the need to set yourself apart.  Today’s Financial news ended about the same way it started, in negative territory.  Interest rates on Colorado homes increased by .125% by close of business.  Several key Federal Reserve members spoke today indicating that they would continue to focus on short term interest rate reductions in order to stimulating the economy.  With no end in sight and the worst still to come, investors are forced to react very quickly in the market to avoid any major losses to their portfolio’s.  With so much instability going on in the market it would only make sense that Mortgage Backed Securities continue to be a safe bet for investments.  The concern facing investors right now will be the impacts of continued interest rate reductions to inflation.  The Federal Reserve has already made it clear that rate reductions will be its primary tool to combat recessionary pressures.  By lowering short term interest rates, the Federal Reserve increases consumer spending creating inflationary pressures.  This will be very bad for mortgage rates and will add to some of the issues Colorado homes are already facing.  On a good note for Mortgage Backed Securities, PCE (Personal Consumption Expenditures) reported about 20% lower then expected today.  The PCE report is a good report to measure current inflation expectations.  We should have seen a drop in interest rates today based on this information alone, but that was not the case.  The remaining economic data; Corporate profits, jobless claims, and GDP all fell in line, giving investors a boost in confidence.  This confidence translated into a bullish approach to investing, forcing considerable amounts of money out of the bond market and into the stock market.  I would remain cautious on what rates will do, but the economy continues to be the hot topic and with economic numbers all mirroring numbers last reported during recessionary times, I can’t help to think that rates will get better.  Recommendation remains as a float, but lets watch what early next week brings us.  I hate locking on Friday’s because historically Friday’s rates tend to be higher as activity drops considerably.  Best of Luck and God bless

Daniel