Colorado Home Mortgage Refinance Loan Rates will be impacted by 4 economic reports:
Colorado Home Mortgage Refinance Loan Rates will be impacted by 4 economic reports Tuesday and Wednesday. Consumer Confidence, Advanced GDP, Chicago PMI, and Finally information coming out of the Federal Open Market Committee meeting. All of the data coming out of these reports will send signals to the market indicating economic stability. As you know this information is vital to the pricing of Colorado Home Mortgage Refinance Loan Rates.
Consumer Confidence has a direct correlation to consumer spending, which accounts for two thirds of the economy. Consumer Confidence also has some correlation with joblessness, inflation, and real income. Typically only changes of five points or more are considered significant with higher numbers pointing to greater consumer spending. There are other pressures that change consumer spending other than consumer confidence, inflation, joblessness, and regional business issues. Consumer Confidence is used to predict the direction of Consumer Spending but because of other influences, higher Confidence won’t always lead to higher Spending. This report will have an impact on Tuesdays Colorado Home Mortgage Refinance Loan rates.
Colorado Home Mortgage Refinance Loan rates are also influenced heavily by advanced GDP. GDP is a significant report for several reasons. It is the most encompassing picture of economic activity and when paired with the employment report gives a picture of productivity growth. The data is used to define business cycle peaks and troughs. Higher GDP points to accelerated inflation while lower GDP indicates a weak economy.
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. So far this year manufacturing shows signs of contracting. Contraction in manufacturing is considered bad for the economy, but good for Colorado Home Mortgage Refinance Loan rates.
Finally the Federal Open Market Committee meet to determine new monetary policy direction for our financial markets. So Far the Federal Reserve action has been to lower interest rates, which by 99.9% of Americans means interest rates are falling. THIS IS NOT TRUE. Lower short term rates means more liquidity more liquidity means more spending. When the economy spends more it does stimulate the economy, but it also has very negative influences on inflations. We all should know by now that high inflation means Colorado Home Mortgage Refinance Loan Rates will suffer. We expect the information coming out of Wednesday Federal Open Market Committee meeting to signal a .25% short term interest reduction. Anything higher will cause Colorado Home Mortgage Refinance Loan Rates to increase out of fear for inflation.
I have Colorado Home Mortgage Refinance Loan rate information posted at www.coloradomortgagebanking.com/news In the mean time let me know of any Colorado Home Mortgage Refinance Loan Rate questions you might have. FLOAT remains our recommendation and you can read more about that at the site listed above. Best of luck and seem my post tomorrow sometime after 1pm.
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