Colorado Mortgage Rates continue to climb
Colorado Mortgage rates continued it’s up hill climb today. So far Mortgage Backed Securities are reporting about .25% increases in Colorado Mortgage rates. The news over the last few days has not been favorable to Mortgage Backed Securities. There are a number of reasons why this may be taking place, but it certainly reminds me of exactly how difficult it can be to project exactly where Colorado Mortgage rates are going. In last 3 weeks we have seen Colorado Mortgage rates increase and increase and it just does not appear that we have any relief in sight. All the Economic data coming in during the last 3 weeks should have been favorable to Colorado Mortgage rates; however that has not been the case. 1Q profit reports seem to be the driving force over the last 3 weeks leaving economic data for the back page of your local newspaper. So the question today will be how much longer will Colorado Mortgage rates go up? And what will the rate be at its high point? Most of my clients have been quoted between 5.75% and 6.0% with the condition that we would monitor a lock request at 5.5%. Colorado Mortgage rates don’t appear to be heading in that direction in the next 45 days. I still believe that we are at a high point assuming that we have no major surprises in the stock market (Like Ambac see www.coloradomortgagebanking.com/news). We have some slow days ahead as it relates to economic data, and most of the companies have reported their profits for 1Q, so we should see the momentum return to a more predictable approach. We have 3 big reports coming out on April 30th all of which will impact the market. The biggest report of the three will be GDP which so far has reported positive production numbers. If this report comes in lower then expected we will see rates improve. Consumer sentiment and Consumer Confidence comes out tomorrow, both of which should come in low. So assuming the stock market news keeps itself out of the headlines, rates should improve and FLOATING remains my recommendation. It is a bit scary to see where we are at compared to 6 weeks ago, but I have said this many many times, we are not out of the woods yet! We will see bad economic data continue to make the headlines and when this happens Colorado Mortgage Rates will get better. With that said, I am changing the Lock Floor Recommendation from 5.5% to 5.75% still a good rate, but hitting that 5.5% in the next 30 days will be out right difficult. Call me with any of your Colorado Mortgage questions.
Daniel
Tags: Colorado Mortgage, Mortgage, Mortgage Backed Securities, Rates
