Colorado Home Mortgage Loan

The week’s headline economic report showed that inflation rose far more than expected in July, yet mortgage rates barely reacted and ended the week essentially unchanged. The July Consumer Price Index (CPI), the most widely watched inflation indicator, rose at the fastest annual rate since 1991. The core rate, which excludes the volatile food and energy components, rose at a 2.5% annual rate. The Fed’s perceived comfort level for core inflation is between 1.5% and 2.0%.

Mortgage rates usually move higher after an unexpected increase in inflation. This time they did not. Investors have started to expect that inflation levels will diminish later in the year and point to a couple of factors. First, slower economic growth in major global markets will reduce demand for goods and energy. In addition, a stronger US dollar will lower the cost of imported goods.

Even the Fed’s Stern, noted for his vigilant anti-inflation stance, stated that he expects inflation to come d own after the third quarter. To summarize, economic weakness at home and abroad, a stronger dollar, and a decline in oil prices offer hope that future inflation levels will be lower.

The Economic Calendar will be very light next week. The Producer Price Index (PPI) will come out on Tuesday. PPI focuses on the increase in prices of “intermediate” goods used by companies to produce finished products. Housing Starts will also be released on Tuesday. Leading Indicators and the Philadelphia Fed index will come out on Thursday

The biggest decision facing borrowers today is whether to use a Colorado Mortgage Broker or a Colorado Mortgage Banker.  Normally the decision is made by which Colorado Mortgage provider is offering you a better rate or lower fees.  For this article we will make the assumption that both Colorado Mortgage broker and Colorado Mortgage banker can offer the same product.  I will discuss some of the product availability differences later on, but for now let’s compare apples to apples.  This assumes that both Colorado Mortgage Brokers and Colorado Mortgage Bankers offer the same products.  The product we will look at is a standard Conventional Loan at 20% down.  The loan parameters also assume good credit, income, and job stability.

I can go into detail about where the money comes from to help finance these mortgages, but for time purposes lets also assume that Colorado Mortgage Brokers and Colorado Mortgage Bankers all get their source of funds from the same place.  The Mortgage Backed Securities market is the largest market dealing with the investment returns expected from Colorado Mortgage Portfolios.  The money used in these investments comes from investors dealing in mortgage securities right from Wall Street.  So the primary difference on what is charged on a Colorado Mortgage stems from overhead costs and profit expectations from one Colorado Mortgage Bank from another.

Now let’s talk about a Colorado Mortgage Banker.  These Colorado Mortgage Bankers are considered retail outlets for a bigger bank entity.  It is simply one division of the banks total operations.  They borrow the funds from a wholesale lender in order to issue Colorado Mortgage products back to the borrower.  Often times, they Borrower right from their own wholesale divisions.  For example Wells Fargo has a wholesale division that works directly with investors on Wall Street.  This Wholesale division offers Colorado Mortgage funds to its Retail Wells Fargo Branch and their Colorado Mortgage Broker relationships (which I will talk about later).  The Retail Branch has a Colorado Mortgage Banker that offers these products to the public.  Now the Wholesale division offers the Colorado Mortgage Funds at the same rate and cost as they do the Colorado Mortgage Brokers which they have relationships with.  The Retail Branch then is required to put in a profit margin and compensate for overhead.  Overhead expenses are not exclusive to the mortgage part of a retail bank, but instead the entire operations of the Retail Bank.  The minimum break even point for a Colorado Mortgage Banker is much higher then it is for a Colorado Mortgage Broker. 

There are two ways the Colorado Mortgage Banker can make up for the difference in cost.  One way is to charge higher fees (which the rarely do) or they can make up the compensation through a higher rate.  The higher rate allows the Colorado Mortgage Banker additional income reward to them by the Wholesale division.  This compensation difference is known as Yield Spread.  The costs for all Colorado Mortgage products are about the same as it relates to third party fees.  These fees must be paid by the borrower of the Colorado Mortgage Provider.  One way or another they are paid.  So if the third party fees are similar and the wholesale rate is similar then what really sets the Colorado Mortgage Banker apart from the Colorado Mortgage Broker is its overall cost structure and profit expectations.

This brings us to Colorado Mortgage Brokers.  Colorado Mortgage Brokers enter into relationships directly with Wholesale lenders throughout the United States.  Colorado Mortgage Brokers are not limited to the number of relationships they enter into and often find huge benefits by entering into several relationships.  Unlike a Colorado Mortgage Banker, Colorado Mortgage Brokers are not limited to only one Wholesale lender this gives Colorado Mortgage Brokers a competitive edge.  Colorado Mortgage Brokers have the ability to price out wholesale lenders and offer its borrowers the lowest wholesale rate available.  Colorado Mortgage Bankers and only offer what their wholesale lender has and if it is not competitive they too are not competitive.  Colorado Mortgage Brokers like Colorado Mortgage Bankers also have Overhead costs and Profit expectations priced into every loan.  The difference is that Colorado Mortgage Brokers only have overhead related to actual Colorado Mortgage production versus multiple lines of business in a Retail Bank.  Overhead tends to be lower and assuming the Colorado Mortgage Broker is offering you the same Profit margins their rates will most often be lower then the rates offered by a Colorado Mortgage Banker.

In summary, it is important to do you homework and not all Colorado Mortgage Brokers are on the up and up.  Colorado Mortgage Bankers typically have a small but fair profit margin built into their rates, where as a Colorado Mortgage Broker can pretty much charge as much as they want.  In these circumstances a Colorado Mortgage Banker will be you best options, however we have our price structured similar to most Retail Banking institutions and we benefit from Volume generated Profits.  This allows us to competitively price our Colorado Mortgage options and it is in rare situations that a Colorado Mortgage Banker can beat what we can offer.  It is so rare that I will match or beat any Colorado Mortgage Banker offer in order to win your business.

Finally some caution to all borrowers.  There are still many Colorado Mortgage Brokers that lack the ethical standards to provide you with an honest and accurate account of what your Colorado Mortgage will be at closing.  Bait and Switch is still a common practice and is far less likely to happen in the Colorado Mortgage Banker situation then a Colorado Mortgage Broker situation.  I can only say that with our services we are committed to ensure there are no surprises in your Colorado Mortgage Process.  This commitment is probably the biggest reason for our large referral business which we take great pride in.  We want you to be completely satisfied with your Colorado Mortgage experience and we know that working with any one of our Colorado Mortgage Brokers you can count on getting the best package available to you in the market.  Call me directly with any Colorado Mortgage questions, and take a look at www.coloradomortgagebanking.com/news for current Colorado Mortgage rate information.

Daniel

Colorado Mortgage rates have improved for the 2^nd straight day, giving us hope that Colorado Mortgage rates may start looking competitive sooner then later.  Most of the Colorado Mortgage rate improvements can be contributed to growing concern for the economy and a decreased emphasis in inflation.  It only took two days and 4 separate speeches by the Federal Reserve to increase Colorado Mortgage rates by almost 1%, it may take weeks to recover from the increases.  So far most of the data being released seems to favor Colorado Mortgage rate improvement.  We saw this happen yesterday with the release of the Producer Price Index.  Producer Price Index came in as expected and all the hype related to inflation concerns seem to dissipate with the report. 

Today we have no scheduled Economic Reports to help the Market.  Investors will be looking at Headlines to determine their buying motivation in the Colorado Mortgage Securities market.  We has some very unexpected news hit the securities (stock) market today as Fed Ex reported earnings far worse then expected.  The stock market appears to be down over 100 points and may hit the 11K mark by the end of this week.  Colorado Mortgage Rates always do well when news in the security markets appears to be bad.  Morgan Stanly also reported very negative profit news and their stock is currently trading about 10% lower then yesterday.  So in a day of very little economic data it appears that the headlines have increased to momentum to buy bonds.  This new demand will increase the price of bonds and lower Colorado Mortgage Rates.  Take a look at www.coloradomortgagebanking.com/news if you get some time to compare other market moving indicators, but regardless of which site you tune into it is clear that you will not lose by FLOATING until tomorrow. 

Stay tuned for tomorrows leading indicator report, Jobless Claims, and Philadelphia Fed Index to get a step up on whether locking will be necessary.  Everything I am seeing in the market seems to indicate that the economic data due to be released should come in as expected and no real surprises are in store.  If that is true then Colorado Mortgage Rates will continue its downward trend.  We learned something over the last week or so and that is the Federal Reserve is not as predictable as they have been in the past.  I still have a lot of faith in Mr. Bernanke but he still has a lot of critics out there thinking that he may be in over his head.  Colorado Mortgage Rates appear to be impacting new loan applications which have hit its lowest mark since 2006.  When you are shopping for a Colorado Mortgage it is critical that you work with someone who understands the market.  We will give you the Colorado Mortgage that makes sense for you.  Call me with your Colorado Mortgage questions and have a great day.

Daniel

Colorado Mortgage Rates appear to be on their way back.  We had a couple of economic reports to talk about today.  CPI, and Consumer Sentiment were released earlier this morning and both reports created some positive movement for Colorado Mortgage rates.  In a week were Colorado Mortgage Rates hit an all time High for the year, it was nice to see that Friday the 13^th created the relief we needed.  It is nice going into a weekend knowing that Colorado Mortgage Rates should not see any more increases for the week.  We will need to wait until next week to see if we can expect any additional relief as PPI will report on Tuesday.  Colorado Mortgage Rates will certainly see continued relief once the second component in the inflation reporting picture comes out.  We are hoping that Producer Price Index report comes in as expected.  Here are today’s Colorado Mortgage summaries:

Consumer Price Index 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 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 markets.  Our CPI index reading came in at .6% which was actually slightly higher then expected, but not enough to create the surprises expected with inflation.  Colorado Mortgage Rates reacted very well to the information.  Core CPI which takes out some volitle components in the price index like food and energy, is believe to be the better measure for inflation  Core CPI came in at .2% which was exactly in line with expectations and again created some very positive movements in the Colorado Mortgage Markets.

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.  Investors look at this to gain perspective on what people might do as it relates to spending.  High spending creates positive Economic movement.   Colorado Mortgage rates almost always increase when readings on Consumer Sentiment are high, Colorado Mortgage rates will also decrease when Consumer Sentiment readings are low.  Consumer Sentiment came in at  Surprising 56.7 which is the lowest reading since the double digit interest rate epidemic of the 1970’s.  Colorado Mortgage Rates definitely responded positively to this information. 

In Short we are recommending a FLOAT recommendation because nothing in the headlines or economic data seem to indicate any issues with Colorado Mortgage Rates going up.  You can also check out www.coloradomortgagebanking.com/news to get some additional LOCK or FLOAT recommendations.  Right now we are just holding out for the last inflationary report of the month due out on Tuesday, until then have a great weekend and call me with your Colorado Mortgage Rate questions.

Daniel

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 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 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 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.

Colorado Mortgage rates continued it’s up hill climb today.  So far Mortgage Backed Securities are reporting about .25% increases in Colorado Mortgage rates.  The news over the last few days has not been favorable to Mortgage Backed Securities. There are a number of reasons why this may be taking place, but it certainly reminds me of exactly how difficult it can be to project exactly where Colorado Mortgage rates are going.  In last 3 weeks we have seen Colorado Mortgage rates increase and increase and it just does not appear that we have any relief in sight.  All the Economic data coming in during the last 3 weeks should have been favorable to Colorado Mortgage rates; however that has not been the case.  1Q profit reports seem to be the driving force over the last 3 weeks leaving economic data for the back page of your local newspaper.  So the question today will be how much longer will Colorado Mortgage rates go up? And what will the rate be at its high point?  Most of my clients have been quoted between 5.75% and 6.0% with the condition that we would monitor a lock request at 5.5%.  Colorado Mortgage rates don’t appear to be heading in that direction in the next 45 days.  I still believe that we are at a high point assuming that we have no major surprises in the stock market (Like Ambac see www.coloradomortgagebanking.com/news). We have some slow days ahead as it relates to economic data, and most of the companies have reported their profits for 1Q, so we should see the momentum return to a more predictable approach.  We have 3 big reports coming out on April 30^th all of which will impact the market.  The biggest report of the three will be GDP which so far has reported positive production numbers.  If this report comes in lower then expected we will see rates improve.  Consumer sentiment and Consumer Confidence comes out tomorrow, both of which should come in low.  So assuming the stock market news keeps itself out of the headlines, rates should improve and FLOATING remains my recommendation.  It is a bit scary to see where we are at compared to 6 weeks ago, but I have said this many many times, we are not out of the woods yet! We will see bad economic data continue to make the headlines and when this happens Colorado Mortgage Rates will get better.  With that said, I am changing the Lock Floor Recommendation from 5.5% to 5.75% still a good rate, but hitting that 5.5% in the next 30 days will be out right difficult.  Call me with any of your Colorado Mortgage questions. 

Daniel

Mortgage Backed Securities are showing some loss right now.  It has been an up and down day for Colorado Mortgage rates and so far we are looking less favorable then what was being reported an hour ago.  If the trend continues we may actually see pricing get a little worse today.  The Consumer Price index came in today right in line with expectations.  This in it self should have brought rates back in line, and we should instead, be experiencing some Colorado Mortgage Rate improvements.  The only rhyme or reason I can see causing change in the Mortgage Backed Securities, has to do with the Bullish approach investors are currently using in the stock market.  Some Corporate Profits are coming in as expected and investors are seeing that as a good sign.  What they forget is that though the profits are coming in as expect they are still coming in as CRAP:-)  Investors are like lemmings and I have said this many times.  One set of investors take a strong buy approach and the rest follow close behind, all of them thinking that someone knows something the other does not.  As soon as they realize that they are all dumb as posts, a rebound should be felt back in the securities market.  Colorado Mortgage rates should be seeing improvements right now, but so far that is not the case.  I believe that the improvements should be felt by the end of the week.  We continue to have economic reports through out the week and the second any of these reports remind us of where we are at as an economy, Colorado Mortgage rates should move back down.  FLOATING remains the recommendation in place.  We will keep a close eye on the Jobless claims report due out tomorrow.  This report by itself can bring things back into prospective.  Check out www.coloradomortgagebanking.com/news when you have a chance.

Daniel