Colorado Home Mortgage Loan rates might see some additional improvments before the 4th of July
Colorado Home Mortgage Loan rates will be impacted by a variety of Economic reports due out this week. We saw some nice improvements last week and we are hoping that the momentum will continue to drive Colorado Home Mortgage Loan rates down. We are hitting some resistance in the MBS market and you can learn more about that at www.coloradomortgagebanking.com/news. We will focus this site on the news that will impact your Colorado Home Mortgage Loan rates today. We only had one report today, which was the Chicago Purchasing Managers Index. The Chicago PMI is measured by new orders, production, supplier deliveries, inventories and employment; asking for positive, negative or unchanged readings of each. A reading above 50% generally indicates that the manufacturing sector is expanding, and below 50% signifies contraction. The Chicago PMI report came in at 49.6 which still indicates contraction in production however it does appear that we may be hitting the turning point soon. We can only contract so far before expansion becomes inevitable. Colorado Home Mortgage Loan rates did not move much from the news as it basically came in close to expectations. With no surprises in the report investors looked to the headlines to make their buying decisions. The stock market did increase a bit and because of those gains MBS did take a bit of a hit. Colorado Home Mortgage Loan rates did jump up about .125% by close of business.
I do not think that the increase seen today will continue unless something unexpected happens in the next day or so. Most of the Economic reports being released this week will have minor impacts on Colorado Home Mortgage Loan rates, and will not be enough to break any new barriers. Most of the decreases felt in Colorado Home Mortgage Loan rates over the last couple of weeks have found its way into the Rate Sheets today, and LOCKING would be a good idea. Those that think inflationary pressures will not creep into the news might find this week’s economic data favorable to Colorado Home Mortgage Loan rates. We have a variety of reports due out that will create some movement. The two reports to watch out for this week are tomorrows ISM index and Thursday Nonfarm Payroll. These are the only two reports that could break some of the barriers we are seeing in the MBS market.
The ISM Manufacturing Index is a national survey of purchasing managers which covers such indicators as orders, production, employment, inventories, delivery times, prices, export orders, and import orders. The ISM provides a composite index of national manufacturing conditions. Manufacturing is an important sector of the economy and the ISM index is one of the two primary national measures (the Chicago PMI is the other). Like the Chicago PMI anything reported below 50 indicates a contraction in the market. If the Chicago PMI is a preview of what is to come in the ISM Manufacturing Index, we will see this report indicating some contraction in the market. Colorado Home Mortgage Loan rates should decrease a bit if the report indicates contraction. How much Colorado Home Mortgage Loan rates will improve depends greatly on what the report says. I don’t expect any surprises in this report and because of that, do not expect any real movement to play out in the Colorado Home Mortgage Loan rate market.
Non-Farm Payrolls is estimated based on a survey of larger businesses measuring the number of paid employees working part-time or full-time in businesses or for the government. This report typically has a big impact on Colorado Home Mortgage Loan rates, because on the inflationary implications that come from the report. The Non-Farm 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 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. This could be the information we need to break through the price Ceiling currently being felt in the market. This also assumes that we do not see any additional movement in Colorado Home Mortgage Loan rates until then. Inflation is a hot topic and if the reading comes in worse then expected, much of the inflationary fears revolving around this report will dissipate (for the time being). Colorado Home Mortgage Loan rates will see some nice improvements and we might at that time get below the 6.0% range. We need to weigh out the risk/reward in any decision to float or Lock. We have hit a low point for the last couple of weeks and we will need the economic data to indicate something that is contradictory to what experts are say. Which is that inflation is under control. Only if this happens will rates improve to a point where floating makes sense. Its like betting on the right horse, about a 1 in 10 shot, because of this if you are not risk adverse, then LOCKING would be a good idea.
Please call me with your Colorado Home Mortgage Loan rate questions. I would enjoy earning your business.
Daniel
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