Colorado Home Loan rates hit a new summer high
Colorado Home Loan rates hit a new summer high. Most Colorado Home Loan providers are quoting around 6.25% or 6.5% for a conventional 30 year fixed Colorado Home Loan rate product. We will continue to honor 6.0% and will not charge any points. The hit for the new rate will be absorbed by us. Colorado Home Loan rates took on some extra baggage when today’s Jobless Claims report came in better then expected. Keep in mind that when Economic data shows signs that our economy is on a path to recovery, Colorado Home Loan rates will take a hit. The reason for that is that investors will pull money out of the Mortgage Backed Securities market and will in return leave it in the equities market.
Jobless Claims came in at 357K and the expectations were set at 370K. Colorado Home Loan rates reacted negatively to the data. 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.
This report impacts Colorado Home Loan rates because if unemployment goes low enough it can put the demand for higher wages in the market. The higher wage demand puts pressure on the economy and can cause increases in Colorado Home Loan interest rates. The Bank of England, which has similar responsibilities to the Federal Reserve did not move interest rates up or down which was expected by the market. The combination of the two reports normally would not have drastic impacts on the Colorado Home Loan market, but tied to comments made by the Federal Reserve yesterday, made a bigger impact on Colorado Home Loan rates then it normally would have.
Inflation continues to be the #1 influencer on where Colorado Home Loan rates are expected to go. Higher inflation will devalue long term investments. The lower price pressure requires a higher Colorado Home Loan rate to attract other investors. We have implemented a FLOAT recommendation which you can read in detail at www.coloradomortgagebanking.com. In the mean time we will need to prepare ourselves for the Nonfarm Payrolls and the unemployment rates which will create some movements in the Colorado Home Loan rate market. Industry experts have been extremely low in their estimations as it relates to forecasting these economic data reports. If the trend continues and the consensus on where the data will come in is still low, Colorado Home Loan rates will go up again. 6.0% is sounding more and more like the rate of choice and if it is offered to you would not be a bad Colorado Home Loan rate to lock in. We have jumped a bit in the last 3 weeks and if you believe Colorado Home Loan rates may improve then wait until you feel like locking your Colorado Home Loan. I only recommend the FLOAT option today, because much of the data released today have already had the impacts hit the market. Colorado Home Loan rates started the day off worse and it appears that as the day progresses that much of the loss from today’s economic reports will be regained in the Colorado Home Loan rate market.
As I stated before tomorrows two economic reports will create movement in the Colorado Home Loan market who much movement will be realized when the reports are released. Nonfarm 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 Colorado Home Loan 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. The monthly reports are, however, very volatile and subject to large revisions in future releases. Long term trends in the report’s data are a better gauge for the true state of the labor market. Strength in the labor market implies a strong economy and is usually negative for Colorado Home Loan markets. Unemployment will also be released with this report and is the second component in what investors look at in the reported employment numbers. Colorado Home Loan rates will either jump or of go down after the release of these figures.
It is very hard to determine where we need to lock your Colorado Home Loan in the next 24 hours, but it appears that for the moment the Mortgage Backed Securities market is trying to make up for some of the ground lost earlier this morning. I would FLOAT your Colorado Home Loan rate until late this afternoon and would lock then if you want to take the risk out of the market. For those willing to ride it out, it appears that we have a lot of ground that we could make up that could be regained if the employment numbers come in worse then expected.
Remember to call me with your Colorado Home Loan questions. My Colorado Home Loan Rate Lock Recommendation remains at 6.0% we will see what Friday brings us until then.
Best of Luck
Daniel
Tags: Colorado Home, Colorado home loan, Home Loan, Loan rates, Rates
