Colorado Home Loan Rates appear to be holding steady
We are seeing some volatility in the Mortgage Backed Securities market this morning and Colorado Home Loan rates appear to be holding steady for the moment. There appears to be a lot of buzz on the Hill related to a variety of FHA sponsored bills which were approved by the house yesterday. The Frank bill approved yesterday in the house has proposed a $15 Billion dollar bail out on homes currently facing Foreclosure. The bill would forgive the balances on Colorado Home Loans that exceed the current property prices. These lenders would then refinance the Colorado Home Loan at a balance closely reflecting actual value. The difference would be paid out by the government. Now on the surface it appears to be a good program, especially if your owe more on your home then it is worth. Colorado Home Loan programs have not faced the same obstacles as other loans in other states. Florida, Nevada, Michigan, and California just to name a few have seen home prices drop more then 20% in the last year and many people trying to refinance just can’t because of the current property value issues. Colorado Home Loans based in parts of Denver are facing similar issues. These Colorado Home Loan programs were designed to be refinanced in two years with the hope that property values would go up. Instead many consumers are faced with Colorado Home Loan programs that have adjusted to a point where the home can no longer be afforded. This is a major issue in our foreclosure market today and though I believe the bill has good intentions, ultimately the results will not favor the market. I continue to support my philosophy that the Government should not intervene in any market activity. Normally when you have governments trying to push markets in one direction or another, the market tends to react poorly.
Colorado Home Loan programs were underwritten by a variety of Lenders understanding the risk associated with them. The lenders who approved the loans should be held accountable for the type of Colorado Home Loan programs they approved. We are in a very tough market which will recover. We simply need the markets to resolve the issues on their own. Only when you have the absence of outside influences will the market correct itself. Colorado Home Loan rates do appear to be holding steady around the 5.75% range we LOCKED in at yesterday, but it appears that we may be heading for some tough days ahead. We will continue to recommend Locking and at this point you should not be getting quoted anything above 5.875%. If you have a Colorado Home Loan rate above that please call me and give me a chance to see what I can do for you. In the mean time have a great weekend and a special happy Mothers Day to my Wife, We just found out yesterday that we are expecting baby #2. Jaimee I love you. If you want to read more blog information go to www.coloradomortgagebanking.com select blog #1
Daniel
Tags: Colorado home loan, Home Loan Rates, Rates
