Colorado Home Mortgage Loan

Colorado Home Mortgage Refinance Loan rates saw very little movement today.  The only major economic report to be released today was the Consumer Confidence numbers.  It appears that Consumer Confidence is at an all time low and Colorado Home Mortgage Refinance Loan rates did see some action because of this.  Colorado Home Mortgage Refinance Loan rates dropped a bit but not enough to make any type of rate change in the lender rate sheets.  Most of what will impact the market will be released tomorrow and Colorado Home Mortgage Refinance Loan rates will certainly see some action because of this.  Listed below I have a simple break down of the reports released today and what we can expect tomorrow:

Consumer Confidence fell to a record low 50.0, which was a lot worse then the 56.0 expectation set in the market last week.  Colorado Home Mortgage Refinance Loan rates will see some improvements based on this information alone.  Consumer Confidence has a direct correlation to consumer spending, which accounts for two thirds of the economy. Consumer Confidence also has some correlation with joblessness, inflation, and real income. Typically only changes of five points or more are considered significant.  We had an 8.2 point drop from when the report was last issued and a 6 point drop from what was expected.  This should have had some strong impacts in the Colorado Home Mortgage Refinance Loan Markets, but so far it appears the FOMC is taking center stage.  There are other pressures that change consumer spending other than consumer confidence, inflation, joblessness, and regional business issues. Consumer Confidence is used to predict the direction of Consumer Spending but because of other influences, higher Confidence won’t always lead to higher Spending.  Higher Spending numbers could be in direct relation to higher inflation.  This would be bad for Colorado Home Mortgage Refinance Loan rates.  However this months report should have improved Colorado Home Mortgage Refinance Loan rates for now.

Two Other Reports released today Richmond Fed Survey and Case-Shiller Price index numbers play separate roles in the Colorado Home Mortgage Refinance Loan Markets, but not enough to be considered a mover and a shaker.  Richmond Fed Survey works similar to the Empire State report and reports on manufacturing areas.  The report indicated a reduction in manufacturing demand which is a sign that our economy appears to be retracting.  The Price Shiller Price Index which monitors price changes in 10 different cities seemed to indicate that pricing is down which should be good news for Colorado Home Mortgage Refinance Loan rates.  I only briefly talk about these because it does not impact the Colorado Home Mortgage Refinance Loan markets enough to make rates move.  However they were released today and the numbers seem to favor Colorado Home Mortgage Refinance Loan rates so I wanted to mention them.

FOMC Meeting will conclude tomorrow and reports will begin to leak in about what was discussed in the meeting.  The first thing that will be determined is the FOMC action.  Action normally relates to what the FOMC has decided to do to short term interest rates.  If no action is taken on Short-Term Interest rates, the FOMC will signal that Economic Stimulus continues to be its main course of action.  This will be good for Colorado Home Mortgage Refinance Loan rates.  If Short Term interest rates are increased then the FOMC will be combating inflation which is very negative for Colorado Home Mortgage Refinance Loan rates.  I believe that the FOMC will leave rates alone and that Colorado Home Mortgage Refinance Loan rates will react positively.  We just need to stay tuned to see if the board was split or not on this decision and we will need to watch for any major inflationary discussions.

 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

I am predicting that the Economic Reports tomorrow will report GDP and Chicago PMI at or below expectations.  These reports if my projections are accurate will cause Colorado Mortgage Rates to drop below the current pricing floor.  This drop will allow us to secure our rate of 5.75%.   This will also open up the door for risk takers to drop below 5.75% over time.  We saw some continued improvements with Colorado Mortgage rates throughout the day, but much of the gain saw this morning was lost again by this afternoon.  The late day loss was due to investors concern about what these two  economic reports will actually say.  With everything we have seen in the market so far, I cannot imagine these reports showing any type of improvement in the market.  The problem is where investors have set the bar.  The bar continues to show expectations far below normal ranges.  Basically the market expects bad data.  If the numbers come in at or below expectations, investors will move to buy Mortgage Backed Securities.  This in return will improve Colorado Mortgage Rates.  

The only other movement we will see in Colorado Mortgage Rates will be the markets interpretation on the FOMC (Federal Open Market Committee) meeting.  The FOMC will release a variety of statements indicating their plan to stimulate the economy.  The FOMC will be expecting another .25% decrease in short term interest rates.  Interest rate decreases help the economy, but tend to be bad for mortgage backed securities.  When Short term interest rates are decreased, investors begin to be concerned with inflation, causing negative ripples in the Mortgage Backed Securities market.  With this said we will continue our FLOAT recommendation until tomorrow.  We are still projecting a decrease in Colorado Mortgage rates through the week.  Though the interpretation on what will be said by FOMC members can impact rates negatively, we just don’t see that happening tomorrow.  Inflation is what we need to watch for.  As each Member of the FOMC board begins to leak information we will all be keeping our ears open for inflation talk.  If the talk is light, Colorado Mortgage Rates will improve.  If for some reason great concern is raised for inflation by the board we will need to prepare for an immediate lock, as rates will certainly rise. Negative inflation news will send Colorado Mortgage Rates back into an uphill climb.  It is up for interpretation, but if the FOMC does anything surprising the market will react negatively.  We can just about get you 5.75% and expect that to be a reality tomorrow.  So far we are implementing another FLOAT recommendation because of how close we are to 5.75%.  LOCKING in the next couple of days may take the risk out of the market but floating for 10 days may get us under the 5.75% we have been so set on breaking through.  Stay tuned and remember to call me for your Colorado Mortgage questions. 

Today was a rough day for Mortgage Backed Securities.   Colorado Mortgage and Loan rates increased about .375% when everything finally settled in today.  Producer Price Index will typically preview what is to come in the Consumer Price index due out shortly.  If today is any indication we may see rates top the 6.0% range sometime tomorrow.  It is hard to recommend Floating at this time, but I can’t help but to think that if you lock tomorrow you will be locking at a high point in the Colorado Mortgage and Loan rate market.  We also have a dark horse report being released with the Consumer Pricing index and that is industrial production numbers.    Industrial Production is one of the major reports measuring economic activity. Stronger economic growth typically leads to higher inflation, so fixed income markets usual react negatively to stronger than expected economic growth.   Colorado Mortgage and Loan rates are expected to increase tomorrow stay tuned to see what the inflationary numbers look like.  Thanks for all your support and look for the update first thing tomorrow. 

Daniel 

The Federal Open Market Committee released their March meeting minutes to the public today.  Colorado Home Mortgage Loan rates tend to move up or down depending on how investors view the information being released.  The biggest issues for investors buying Mortgage Backed Securities is the FOMC outlook on inflation.  Inflation will always devalue a  long term investment like MBS which in return will cause Colorado home mortgage loan rates to jump up.  Today’s report however did not have the substance to move the market in any particular direction.  Normally when the minute reports are as vague as they are today, investors will become cautious causing rates to come down a bit.  Today we did not experience this and it was actually the lack of activity that brought the price of the bonds down this morning.  The reason that activity drives pricing on bonds up and down can be explained in simple economic terms.  Supply and demand.  Low activity signals low demand, and when you have a number of suppliers all trying to sell their bonds, a price reduction is needed to attract more demand.  When the price of bonds drop Colorado home mortgage loan rates will rise.  The lack of activity can only be explained right now by the degree of uncertainty investors are showing in their investment strategies.  When there is uncertainty it would be unwise to move  your investments back and forth on a daily basis.  Moving in and out of the market will never give the investor the longterm results their investors seek from a portfolio.   The wait and see approach typically takes over.  As soon as more data comes in that signals tough times ahead, the sooner we will see rates drop again.  Friday’s seem to be a good day for rates, though historically Friday’s rates have been higher.  I would expect rates to drop a bit in the next day or two and we will anticipate that the remaining weeks data will not paint a pretty picture on the economy.  A FLOATING recommendation has been issued but  remember to Target a rate and if your Colorado home mortgage loan rate expectation are met then LOCK.  Best of Luck and God Bless.

Jobless Claim numbers came in at a WHOPPING 407K, much higher then even the most aggressive figures estimated by investors.  Typically that should be a market mover for Colorado home mortgage loan rates.  Rates have been posted by most lenders already so we may be in store for some mid-day rate improvement.  So far Colorado home mortgage loan rates appear to be right in line with yesterdays rates.  The Jobless Claims Report released today shows that we are not out of the woods yet and that the economy still faces some serious obstacles.  Obviously when there is fear in the market, investors tend to push their money into a more stable and safe market environment, like Mortgage Backed Securities.  A report like this in the past would have almost instantly pushed Colorado home mortgage loan rates down.  So far today we have not seen the movement yet, but I would expect to see numbers improving soon.  We did have some bad news for the Colorado home mortgage loan market with the recent release of the ISM report on manufacturing.  This report came in better then expected, but its impact will be far less then the Jobless Claims report.  We are maintaining our FLOAT recommendation at least for another day or so.  I don’t expect rates to go up in the next 48 hours.  This will stand true as long as we don’t have any major unexpected announcements made.  I want to remind anyone looking to lock their Colorado home mortgage loan to look at the big picture.  The government has taken swift action to get things in place to help move our economy out of these recessionary pressures.  Actions like this have not been reported since the early 1980’s signalling to me that we are in much worse shape then what we currently know.   For those who reported a Jobless Claim in the last 3 months, my heart goes out to you and I wish you the very best in finding something quickly.  FLOAT recommendation will stay in effect until COB today.  I will send out price alerts as I see them, but I don’t expect any negative movement in the market today. 

Two Colorado home loan rates changes for the better????  Hmmmm Maybe we are on to something.  We will look to see what Colorado home loan rates are doing next week.  Normally don’t do a quick Colorado home loan blog post, but two rate changes for the better I really could not resist.

Colorado home loan programs will be impacted today by how the media and investors portray the economic news being released.  When the news about the economy is good Colorado home loan rates tend to increase as investors find it more profitable to invest in the stock market.  When economic news is negative investors again react pulling money out of high risk investments and locking into Mortgage Backed Securities which are consider less risky sending Bond prices up and Colorado home Loan rates down.  The only news to speak of was the New home sales which showed an increase from last quarter of 5.03 million versus the projected 4.85 Million.  This sends the message that the economy is recovering and forces rates up.  I just got an update from one of my Colorado home loan lenders for a reprice and pricing has gotten worse.  Hopefully we got you locked in this morning if not Locking may still pay off if the news later this week shows GDP increasing more then expected.  Call if you have questions.  Best of luck.

Daniel

Just a reminder to anyone wanting additional informatio on Colorado home mortgage loan programs, I do write a blog on Coloradomortgagebanking.com/news and homestly you I never know how different the Colorado home mortgage loan information will be.  I typically write for that site first so it tends to be more technical Colorado home mortgage loan data then what is written here, but the message should be the same.  The market continues to see economic reports trickling in today, and so far it should be good news for Colorado Home Mortgage Loan rates.   The Jobless claims report was worse then expected and the LEI (Leading economic indicator) shows where the economy is and often indicates Recessionary presures.  Last look at Mortgage Back Securities indcate even though the Dow has hit the 150 point increase that Colorado Home Mortgage Loan rates are holding steady.  Most mortgage anaylsts are say that Floating can pay off for an even better Colorado home mortgage loan rate.  I am going against the curve today and have been that way for 4 days now and my recommendation is to Lock.  Monday’s Colorado Home Mortgage Loan rates continued to show the same strong rate trend from Friday and through out the week analysts have been going back and forth on floating or locking your Colorado Home Mortgage Loan. I have been advising everyone to Lock.  Rates have only really moved about 1/8 of a point or .125% up or down since Friday and it still remains good.  Colorado Home Mortgage Loan programs 6 weeks ago where .75% higher and anyone of my clients would have killed for today’s Colorado Home Mortgage Loan rates.  LOCK LOCK LOCK take the guessing out of it.  Rates are good and I should see my entire Colorado Home Mortgage Loan pipeline locked by the end of the day.  Stay tuned this evening for the days report and until then God Bless:-) 

Today it will be short, I will write more later.  Today’s title Colorado home equity loan is appropriate due to the change in Federal funds rate due out any minute.  We are all anticipating a 1% change, anything higer will her iterest rates, but be good for Colorado home equity loan products.  I am currently locking in people as we speak and recommend that we enjoy the rate and cash in now.  Colorado home equity loan products may benefit from a big decrease but home loan rates may increase.  I will explain more later, but if you like the rate no reason to wait LOCK now.