Colorado Online Mortgage rate improved a bit today
Colorado Online Mortgage rates improved today as investors began to realize that the mortgage backed securities market was a little undervalued. Investors went on a selling frenzy yesterday on fears that inflation could be higher then what was currently being reported. Obviously inflation is bad for Colorado Online Mortgage rates. I tend to reserve this site to talk about the various economic reports impacting Colorado Online Mortgage rates. I also try to explain how the data was interpreted by the market and what that means to future Mortgage Backed Securities Pricing. The price of bonds has an inverse relationship to Colorado Online Mortgage rates. When bonds are up Colorado Online Mortgage rates are down.
Most movements created in the market revolve around volume activity in the market. Volume in the market is dictated by Economic activity, which is reported by economic data and/or current headlines. In the absence of economic data, current headlines take the center stage for what investors look at to help them determine their buying and selling strategies in the market. When buying volume is up Colorado Online Mortgage rates will decline. If selling volume is up Colorado Online Mortgage rates will climb. Our only economic data report for today came in the form of Existing home sales. The Existing Home Sales Index reports the number of existing homes sold, expressed on an annual basis. The sales of existing homes accounts for 84% of all houses sold and the total volume indicates housing demand. The report is a strong predictor of future national mortgage origination volume and for near term spending for housing-related items. The Existing Home Sales expectation for today was around 4.85 million and the actual data came in around 4.89 million. This data appeared to be better then expected and typically causes Colorado Online Mortgage rates to jump a bit. However the data is still so poor that investors could not help but be concerned about the volume in Home sales. This concerned outweighed the better then expected numbers and caused investors to seek safer investments. When investors seek safe investments bonds become a nice portfolio to have. We also had inventory numbers released for homes currently on the market. This report showed that we had more homes on the market then ever before. Our inventory levels came in at a new 22 year high and not since 1985 have home inventories been so bad.
Colorado Online Mortgage rates will be impacted by a verity of economic reports due out. Durable orders; consumer confidence; and new home sales will all be market movers next week. The biggest report for the week will come in Durable Orders which reports on Wednesday. Durable Goods Orders reports the number of new orders placed with domestic manufacturers for immediate and future delivery. Durable goods are items considered to be useful for at least three years (such as vehicles, large appliances and computers.) It is important for Colorado Online Mortgage rates because durable goods provides insight into demand as well as business investment. Companies willing to spend more on equipment and other capital are possibly experiencing sustainable growth and could be planning on greater production capacity. The Durable Goods Orders report is a leading indicator for the manufacturing sector and has a big effect on the Colorado Online Mortgage markets despite its volatility and large revisions. The non-defense category closely reflects the GDP category, Producer Durable Equipment, and is looked at more closely than the overall headline number.
We believe that we will continue to see light reporting through Tuesday of next week and therefore should see Colorado Online Mortgage rates continue to regain this weeks lost ground. Colorado Online Mortgage rates will be focused on Headlines until then and because most of the 1Q reporting has already found its way into the market no surprises appear to be on the horizon. If you can get 5.75% the LOCK otherwise continue to FLOAT until early next week. Call me with your Colorado Online Mortgage questions and take a look at www.coloradomortgagebanking.com/news.
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