Rates trend up on UBS information: Colorado home loan rates
Colorado home loan rates have had some negative news come out today causing interest rate to increases for much of today. UBS or Union Bank of Switzerland announced that they would be issuing investment opportunities in order to raise capital. This Financial institution has seen some tough times over the last couple of quarters and in order to relaunch their current market position have had to asked the market to provide them with capital. Colorado Home Loan rates will take a hit as investors pull money out of the Mortgage Backed Securities market in order to capitalize on these new investment opportunities. Even though UBS reported a 19 billion dollar write-down on their financial reports, investors still believe that UBS is a credible investment risk. By offering higher returns with their capital investment opportunities, investors are likely to take the bait and buy. This should return some good numbers in the stock market. Like every other big news item investors do have one flaw and that is a tendency to over react. Investors are looking for what ever edge they can get to make their portfolios perform better, but realization should set in again towards the end of the week. I expect that the markets will continue to react to this news tomorrow, but like last week, the second any bad economic news hits the market, investors will begin a quick retreat into the bond markets. by getting investors back into bonds, Colorado home loan rates will begin to fall. The question here is when will the economic news prove to be to much for investors to continue this stock buying frenzy. We may have to wait until Friday when the unemployment figures are released in order to get the movement back, but eventually it will happen. The real money maker question today is simple, How far will rates go up before investors come to their senses and begin to pull their money back into safer investment vehicles? Only time will tell, but I believe it will happen by the end of this week. Floating is tough to recommend when rates go up but for now if you LOCK you will find yourself buying into the over reaction currently taking place in the market. We will keep a close eye on the reports. If any of the new economic data begins to show signs that the economy is in a state of recovery then we will issue a Strong LOCK recommendation. Now lets just think about what was said and ask yourself are we really showing any signs of recovery? If you answer no then waiting to lock should pay off.
Tags: Colorado home loan, economic data, investors, Rates
