Mortgage Backed Securities are seeing some gains this morning on news that Corporate Profits are not meeting expectations. Coloado Mortgage Rates should improve!
Looking at the stock market this morning it has become very clear that Corporate profits will come in lower then expected. Colorado Mortgage Rates should see some improvements by the end of the day. When investors look for safe investments, Mortgage Backed Securities becomes a good choice. We have not see a lot of data on Corporate profits yet, but insider trading should clue us in on what is expected. These insiders tend to sell just shortly before profits are reported and as you can see the market is currently down. If the information coming out on Corporate profits were good news the market would be up right now. Since the market is down we can only conclude that the information due out will be negative. Colorado Mortgage Rates should see a nice improvement over the rates released this morning. The only other obstacle we need to continue to monitor will be the supply of bonds being offered in the market. The oversupply of bonds can off set any interest rate improvement expected in the next 24 hours. Though this can be an issue, we should look at the reason why we have so many bonds being put on the market. Maybe it is because the demand for these securities will increase in the near future. Why will the demand increase? Simply put these bond suppliers anticipate negative economic news in the near future and believe they will see prices increase for the bonds sold. In the long run when the price of bonds increase interest rates will decrease. This brings me back to my initial prediction that rates should improve by the end of the day and that we may have some good momentum in the near future. FLOATING remains the recommendation in play, but remember if the rate makes sense to you then LOCK, rates are still pretty good in relation to rates over the last 2 1/2 years. Call me with questions 719-314-1320 Best of luck
Daniel
Tags: Colorado Mortgage, Colorado Mortgage Rates, Corporate profits, Mortgage Rates
