Colorado Home Mortgage Refinance Loan rates are taking a hit on early morning trading
Colorado Home Mortgage Refinance Loan rates are taking a hit first thing this morning in anticipation of the FOMC meeting minutes due to be released. The primary reason for increased Colorado Home Mortgage Refinance Loan rates this morning stems from the lack of volume currently trade on the Mortgage Backed Securities floor. The FOMC minutes are released at 2:00 PM EST on pre-scheduled days. Minutes are prepared to provide the necessary information to Congress and the public on policies and actions of the FOMC. The summary description of economic and financial conditions contained in these minutes is based solely on the information that was available to the Committee at the time of the meeting. The minutes of each meeting of the Federal Open Market Committee are made available a few days after the next regularly scheduled meeting. For example, the minutes of the first meeting of the year are released a few days after the second meeting of the year. It is what the FOMC says in these minutes that will impact the direction Colorado Home Mortgage Refinance Loan rates will go.
We have implemented a LOCKING strategy over the last couple of days, and we are still advocating clients to LOCK. 5.75% is the right pricing point to lock at the moment as it appears rates may climb a bit today and tomorrow. We may even see rates change a bit over the next couple of hours if the Mortgage Backed Securities Market continues its downward pricing trend. Remember that we have an inverse relationship with the price of bonds and Colorado Home Mortgage Refinance Loan rates. When Bond prices drop Colorado Home Mortgage Refinance Loan rates increase. The opposite is said when bond price go up.
Here is a look at the Mortgage Backed Securities market so far.
This is a graph I monitor everyday and it is simple to see when the trend is below 0.00 Colorado Home Mortgage Refinance Loan rates are expected to go up. If the trend is above 0.00 it is safe to assume that Colorado Home Mortgage Refinance Loan rates will do down. The trick here is to determine how the outside influences will move this graph. If we have poor economic data coming in the graph will trend up if the economic data being released comes in better the expected the graph will drop. This in a nutshell is how Colorado Home Mortgage Refinance Loan rates are expected to go up and down over time. Our job is to get in about 12 hours before that happens and predict the direction. More importantly we take the overall trend and focus on where it may go in the long run. Its tough to determine where Colorado Home Mortgage Refinance Loan rates will go, but not impossibleJ
We have Jobless claims being released tomorrow and New home sales on Thrusday. Both these reports will impact the market and at the momement I believe both reports will show negative economic data. This should mean that Colorado Home Mortgage Refinance Loan rates should not spike too much this week, but the will not improve to a point where FLOATING makes sense. If you have not LOCKED in your Colorado Home Mortgage Refinance Loan rate yet then LOCK. The Risk/Reward will not pay off in the long run. Please call me with any of your Colorado Home Mortgage Refinance Loan rate questions. Also check out my other site www.coloradomortgagebanking.com/news when you have time.
Daniel
Tags: Colorado Home Mortgage, Colorado home mortgage refinance loan, Loan rates, Mortgage Refinance, Refinance loan
