Colorado home mortgage loan
Colorado home mortgage loan programs got a bit of good news today. The Fed’s issued two new economic reports both coming in lower then expected. Colorado home mortgage loan rates have dropped a bit on the news, but the lack of activity in the market makes it hard to gauge exactly what kind of long term impact these reports will have. Stay tuned on Monday and Tuesday to see if in fact rates drop on Colorado home mortgage loan programs. The first report issued early this morning had its importance tied to inflation. I wrote a lot about inflation and how inflation impacts Colorado home mortgage loans on my other blog site: www.coloradomortgagebanking.com/news so I will not go into too much detail in this article. The report I am referring to is the Personal income and outlays report which focuses on an individuals source of income, and total income, from month to month. This report also indicates where the income is being spent. If spending activity is high the concerns for inflation is high. When inflation concerns are high Colorado home mortgage loan programs tend to see interest rates increase. The good news is that this economic report came in lower then expected and actually reiterated what I have been saying for awhile, and that is that inflation is not as bad as investors would have us believe. The second report came from the University of Michigan and it was the Consumer Sentiment Survey which basically illustrates a persons belief on what the economy is doing. This report came in very low but not too much lower then expected. It goes to show that as a society we continue to have our perceptions manipulated by the mass amounts of media experts all claiming to know exactly what the economy is doing. Unfortunately most of them have a pretty good idea, but because bad news increases ratings, good news normally finds a back burner. Make no mistake we have major issues in the Colorado home mortgage loan markets and will continue to see these issues over time, but we do have some good data to report. The most important misconception is that inflation has gotten out of control. When you look at historical data we are actually trending very low. Investors have too high of an expectation for where inflation should be, and it is not as bad as they would lead you to beleive. When investors figure out a way to overcome their fears and accept the facts as it is reported, Colorado home mortgage loan rates will improve. The next misconception is that home sales are considerably down, actually new data and previously reported data all say home sales are exactly where they should be. The problem with the data is that sales are compare today with some of the best home sale numbers of all time. People are still buying homes we are just not breaking any new records. The last part comes in the forecasts of Foreclosures, yes Foreclosures are high, but they still account for a very small portion of all loans issued. Foreclosures are a natural part of doing Colorado home mortgage loan business and financial institutions understand and calculate a portion of their portfolios going into default. The press has jumped on this news to indicate a catastrophic epidemic hitting middle America, and though it is bad, it is not nearly as bad as they would have you believe. Hope this helps, my recommendation continues to be a FLOAT recommendation. We will watch the markets for you closely to see what next week will bring. In the mean time have a great weekend and God bless.
Daniel
Tags: Colordo home mortgage loan, federal reserve, inflation, Rates
