Colorado home equity loan rates appear to be moving slightly better today then yesterday
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
Tags: Colorado Home, Colorado home equity loan, economic reports, Rates
