Colorado Mortgage
Colorado Mortgage Rates appear to be on their way back. We had a couple of economic reports to talk about today. CPI, and Consumer Sentiment were released earlier this morning and both reports created some positive movement for Colorado Mortgage rates. In a week were Colorado Mortgage Rates hit an all time High for the year, it was nice to see that Friday the 13th created the relief we needed. It is nice going into a weekend knowing that Colorado Mortgage Rates should not see any more increases for the week. We will need to wait until next week to see if we can expect any additional relief as PPI will report on Tuesday. Colorado Mortgage Rates will certainly see continued relief once the second component in the inflation reporting picture comes out. We are hoping that Producer Price Index report comes in as expected. Here are today’s Colorado Mortgage summaries:
Consumer Price Index is used to gauge changes in inflation and markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the Colorado Mortgage markets adjust interest rates to reflect those changes. The effect of these changes is seen across all markets, equities, bonds and mortgage backed securities. As a general rule, higher inflation is negative for Colorado Mortgage markets. Our CPI index reading came in at .6% which was actually slightly higher then expected, but not enough to create the surprises expected with inflation. Colorado Mortgage Rates reacted very well to the information. Core CPI which takes out some volitle components in the price index like food and energy, is believe to be the better measure for inflation Core CPI came in at .2% which was exactly in line with expectations and again created some very positive movements in the Colorado Mortgage Markets.
Consumer Sentiment is used to gain insight into possible future consumer spending. It is almost identical to consumer confidence but it has two readings per month, preliminary and final readings. The consumer expectations portion is used for the leading economic indicators index. Investors look at this to gain perspective on what people might do as it relates to spending. High spending creates positive Economic movement. Colorado Mortgage rates almost always increase when readings on Consumer Sentiment are high, Colorado Mortgage rates will also decrease when Consumer Sentiment readings are low. Consumer Sentiment came in at Surprising 56.7 which is the lowest reading since the double digit interest rate epidemic of the 1970’s. Colorado Mortgage Rates definitely responded positively to this information.
In Short we are recommending a FLOAT recommendation because nothing in the headlines or economic data seem to indicate any issues with Colorado Mortgage Rates going up. You can also check out www.coloradomortgagebanking.com/news to get some additional LOCK or FLOAT recommendations. Right now we are just holding out for the last inflationary report of the month due out on Tuesday, until then have a great weekend and call me with your Colorado Mortgage Rate questions.
Daniel
Tags: Colorado Mortgage, Mortgage Rates
