Colorado Home Mortgage Loan

Colorado Home Mortgage Loan rates took a hard hit today on reports that Inflation appeared to be under estimated.  Bill Gross an investment guru and expert in the market made some strong statements indicating that current inflationary data appeared to be under estimated, and that inflation data going forward would be worse then expected.  Bill Gross currently runs the biggest investment portfolio at PIMCO and has been an expert in this field for many years.  His comments to me appear to be accurate, but he does not sit on any committees responsible for reporting inflationary data.  These comments are made based on his professional opinion and by looking at the recent increases in oil, I believe he is correct.  Colorado Home Mortgage Loan rates took about a .25% hit today and appears to be on the rise.  Much of the activity felt in the Colorado Home Mortgage Loan rate market was based on fear, but the fear does seem to be warranted.  It is hard to gauge the exact impact oil will have on inflation, but it is easy to see that it will be a negative impact.  Colorado Home Mortgage Loan rates will continue to jump up as negative inflationary data comes in. 

I have implemented a FLOAT recommendation today simply because the increases felt  today were a result of fear, not hard statistical data released by any economic reporting agencies.  Colorado Home Mortgage Loan rates jumped up today and as a result 5.75% may not be available.  I am maintaining a Colorado Home Mortgage Loan lock recommendation at 5.75% and unless I see something in the data that requires we increase this recommendation to a higher rates will have my clients floating.  Floating will stay as the recommendation until we can get that Colorado Home Mortgage Loan rate at or below 5.75%.  It’s interesting what 24 hours will do, yesterday the feeling was that we have some tough times ahead and that we are not even close to being out of the economical debacle we currently face.  Today I am seeing experts changing their tune on the news that Jobless Claims came in better then expected.  Come on!  Realistically we have some tough times ahead which normally means Colorado Home Mortgage Loan rates should be getting better, but we have one major obstacle and that will be inflationary pressure.  Any positive gains in the Colorado Home Mortgage Loan market due to economic issues will be off set by how bad inflation reacts over the next 12 months.  To what extent this will happen is still hard to gauge.   

The Jobless claims report came in at 365K new claims filed, which is slightly better then the 370K expected.  Normally this alone would not create and movement in Colorado Home Mortgage Loan rates, but today it did push Colorado Home Mortgage Loan rates up a bit.  Initial jobless claims measure the number of first time filings for state jobless benefits. Claims are quite volatile from week to week; therefore many analysts track a four-week moving average to get a better sense of the underlying trend. The report also contains two other statistics- the number of people receiving state benefits and the insured unemployment rate.  The four-week moving average and continuing claims are watched more closely for changes. The labor market is considered to be improving when the four-week moving average goes below 400,000. If unemployment goes low enough it can put wage pressure on the economy and can cause increases in interest rates.  What is interesting about today’s release is that it is the 4^th highest Jobless Claims reported in the last 3 years yet the forecast seemed to be viewed as a positive sign for economic recovery.  Go figure.  Colorado Home Mortgage Loan rates in the past would have responded very positive to the high number, but with such terrible data being released month after month it actual appeared as an improvement. 

Tomorrow we will see our last economic report until Tuesday of next week.  Existing Home Sales will create some movement for Colorado Home Mortgage Loan rates but it does not move the market much.    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.  Mortgage origination has reported negative increases the last two weeks so it is expected that tomorrows report will come in low.  Colorado Home Mortgage Loan rates should respond well but it will not make up all the ground lost today.  Not only will it not make up the ground lost today we may see Colorado Home Mortgage Loan rates get worse if inflationary concerns continue to dominate the Headlines. 

I do think its funny how Congress has required Oil CEO’s to come out and justify their profits.  What they should be working on is alternative solution to a problem that will not go away.  We have a Varity of options to explore and talking about whose fault it is will not solve the problem.  Colorado Home Mortgage Loan Rates will continue to see obstacles as long as oil continues to rise.  Oil is the biggest cost component in shipping which contributes a major impact to the ending price set on goods.  The increases felt in the market will translate to higher inflation.  We have a long way to go, and I do not have a solution to the problem, but I do believe we should do less talking and more doing.  For the sake of time I will limit my tirade to this one thought.  On rare occasions government intervention does help market systems and in the case of Oil something has to be done.  Those that voted in our current leadership party voted on the premises of change.  Well it appears to me that change has not happened.  What’s scary is that it does not appear that change will happen anytime soon.  Contrary to what these congressional people promised NOTHING HAS CHANGED.  If anything things are worse.  If we want change, maybe we need to re-look at who we voted in and think long and hard about voting someone else in. 

If you have time Check out www.coloradomortgagebanking.com/news for more insights on economic conditions.  Please call me with your Colorado Home Mortgage Loan questions.  God bless.

Daniel

 Colorado Home Mortgage Loan rates will be impacted by tomorrows Core PPI report.  PPI measures the change in prices, paid by producers, for a fixed basket of capital and consumer goods. It also measures the change in prices received by the manufacturing, mining, agriculture and electric utility industries. The “core” PPI excludes the often-volatile food and energy sectors and gives a clearer picture of the underlying inflation trend.  Colorado Home Mortgage Loan markets watch this closely because when inflation goes up the value of their bond drops.  When bond values drops the market develops an inverse relationship between bond prices and interest rates.  The inverse relationship causes Colorado Home Mortgage Loan rates to go up as bond prices go down.  Core PPI does exclude food and energy, but oil still makes its way into the numbers.  When Oil prices are high, the cost of shipping increases.  When the cost of shipping is up the cost of goods naturally follows.  Higher priced goods translate into higher priced products sold to the consumer.  The end result is INFLATION.  No way to avoid it, Colorado Home Mortgage Loan rates will always have negative reactions to inflationary pressures.  We do have a little bit of hope as it relates to PPI and that is CPI.  CPI which was reported a week ago came in lower then expected.  These two reports have similar characteristics and normally run in the same patterns.  Even though CPI came in lower then expected, I really have no guess on where Core PPI will come in at.  Normally I would predict a higher then expected number, however because Consumer Price Index came in lower then expected it might be safe to assume that PPI will do the same.  However I do not want to speculate, because everything else points to a higher then expected PPI number.

So Far today’s Mortgage Backed Securities market appears to be light in trading, but the price of bonds are on their way up.  This is good news for Colorado Home Mortgage Loan rates.  I am hoping that we are seeing some insider trading going on in anticipation of tomorrows PPI report.  It could also mean that we have some investors that lack the confidence in trading stocks today.  Regardless of the reason, Colorado Home Mortgage Loan rates do appear to be improving for the moment.  I definitely recommend LOCKING today the risk/reward is not worth floating through tomorrow.  Now if you are risk taker and PPI comes in low then you will see at least an 1/8^th better on your rate going into Wednesday. 

Today the only economic report we had was the Leading Indicators report which came in higher then expected.  Experts predicted a -.1% growth rate when in fact we had a Positive .1% increase.  This by its self had no impact on Colorado Home Mortgage Loan rates.  The Leading Indicators report is composed of ten indicators designed to forecast the strength of the economy six to nine months into the future. The ten indicators are picked from different parts of the economy and are chosen because of their relevancy and accuracy. They are each given equal weight when applied to the composite index.  The LEI can predict peaks and troughs in the economy but because many of the indictors are released individually before the LEI composite index is released, market rarely watch the report very closely.  Some of these indicators include but are not limited to; consumer price index, Hotel Occupancy Rates, total imports, tourist arrivals, and more.  These numbers give economist a basic understanding on the direction the economy is heading.  You can see why Colorado Home Mortgage Loan rates can be impacted, but it is the individual reports like Consumer Pricing Index which is released before this report where the real impacts are felt.

To get a basic understanding on the direction of Colorado Home Mortgage Loan rates visit www.coloradomortgagebanking.com  until then please call me direction for any of your Colorado Home Mortgage Loan questions.

Daniel

Colorado Home Mortgage Loan rates continue to be the center of attention for those buying homes in the near future.  I am asked constantly about how I determine where rates are going.  Simply put I make an educated guess based on the economic data and the live pricing feeds I have into the Mortgage Backed Securities market.  It is actually very simple to predict the direction Colorado Home Mortgage Loan rates will go.  If the Mortgage Backed Securities market indicates that the prices on bonds are increasing then the rate on Colorado Home Mortgage Loans will decrease.  Likewise, if the Mortgage Backed Securities price decreases Colorado Home Mortgage Loan rates will increase.  The economic data released into the market projects the state of the economy today.  If the economy shows signs of improvements Mortgage Backed Securities will drop in price.  The reason they drop in price is due to investors moving money out of safe Mortgage Backed Securities investments and into high risk stock investments.  Colorado Home Mortgage Loan rates will certainly increase when money is moved out of Mortgage Backed Securities market. 

Over the last 9 Months the economic news has been very negative which in return has put Colorado Home Mortgage Loan rates into a very pleasing price range.  It seems like everyone I talk to wants and expects to get their rate into the 5.5% range which has been the low points over the last 9 months.  We have experienced this low point about every 60 days or so.  It really depends on what the trend in the Mortgage Backed Securities market is and how investors are reacting to the economic data being released.  Inflation continues to be the negative influencer for Colorado home Mortgage Loan rates.  The mere fact that it is mentioned normally has Colorado Home Mortgage Loan rates moving in the wrong direction.  The key to locking is to figure out when the low point will happen before you actually close on your loan. 

So far we are trending around 5.875% which is still good for Colorado Home Mortgage Loan rates, but we certainly would like to get a little lower.  So far today the Mortgage Backed Securities market has not responded well and it appears at least this morning that investors believe that the Durable goods report will come in better then expected.  I am still not convinced and as I stated on my other blog www.coloradomortgagebanking.com today’s pricing trends normally predict what’s in store for the economic data being released the next day.  We will have to watch for a late day rally to see if any insider information makes its way into the market.  Rates will certainly be a little worse today, based on what I am seeing in the market.  Though rates will jump a bit we are still holding strong on our FLOAT recommendation, no need to overreact with the market.  If Durable Goods come in below expectations we will see some positive changes in the Colorado Home Mortgage Loan rate market.  Stay tuned I will update you on live market pricing as it happens. 

Right now the Mortgage Backed Securities market is not responding the way we would like.  On the news front Ambac posted a 1.7 Billion dollar loss.  Ambac is a bond insurer and losses with this company signals instability in Mortgage Backed Securities.  This will probably be the reason Mortgage Backed Securities take some hits today.  Colorado Home Mortgage Loan rates increased to its highest point in 6 months the last time a bond insurer company reported losses.  Today we will not see the news effect the market as much because of all the other turmoil we are experiencing in the stock market.  Company after company continues its lower then expected profit reports which will help minimize the decreases felt from Ambac news.  Stay tuned, today will be an interesting day.  We expect Colorado Home Mortgage Loan rates to improve over time, but today will not be that day.  Hopefully the economic data released tomorrow will push out the negative press on Ambac and help get Colorado Home Mortgage Loan rates back where locking makes sense.

Colorado Home Mortgage Loan rates should see some improvements this week.  I just got done looking at the Mortgage Back Securities market and we are right where we left off on Friday.  Friday proved to be a good day for Colorado Home Mortgage Loan rates, which showed most of its improvements on this morning rate sheets.  We do not have a lot of activity being released on the economic data side.  Our next big report will come in on April 24th, when Durable goods release its current numbers.  Today Colorado Home Mortgage Loan rates will certainly be impacted by volume and Headlines.  I discussed several of the headline topics at www.coloradomortgagebanking.com/news.  For now I will focus on the volume component.  Obviously when volume is down and supply is high investors will lower their price on Mortgage Backed Securities in order to stimulate buying.  Right now the market has seen mixed approaches and Colorado Home Mortgage Loan rates have seen some movement in both directions.  We expect that rates will continue this hourly up and down swing, but ultimately over the long term will see rates drop.  If Durable Goods come in lower the expected we should see some nice improvements through the end of the month.  Right now we are maintaining our FLOAT recommendation until something in the market sparks a must lock situation.  We need to keep a close eye on Oil.  Oil continues to be the commodity that can make or break the direction the market goes.  So far Oil companies have done very little to help the overall state of the economy.  This is evident in the astonishing profit growth each of these companies have had in the last 4 quarters.  Colorado Home Mortgage Loan rates will be impacted by the level of profitability made by these companies.  The cost of oil impacts the cost of production which in return impacts the cost to the consumer.  In short when oil goes up inflation tends to be on the rise.  When inflation creeps its ugly face into the Mortgage Backed Securities markets, investors begin to see their investments devalued and in return must offer a higher Colorado Home Mortgage Loan rate to compensate the difference.  If it were not for Oil prices we would probably be seeing some of the lowest Colorado home Mortgage Loan rates ever recorded.  Oil by itself does not move the market, but it does have an impact.  With that said everything else in the market signals better Colorado Home Mortgage Loan rates to come.  Keep watch and remember call me with any questions.

We had three economic reports come out today all of which appears to be good news for Mortgage Backed Securities.  The main thing to monitor will be volume.  If Volume is low then Colorado Home Mortgage Loan rates will increase until something stimulated activity in the market.  So far today that has been the case and Colorado Home Mortgage Loan rates are beginning to increase slightly.  This can also be a direct reflection on the volume created in the stock market over the last couple of days.  This trend will likely stop and Colorado Home Mortgage Loan rates are expected to recover next week.  Each of the reports today indicated that we are still in a bit of a mess as it relates to our economy.  Each report reminded us that we are not out of the woods and we still have work to do before recovery is recognized.  Jobless Claims came in as expected and showed that we are still extremely high.  Colorado Home Mortgage Loan rates should have responded well to the news and rates should come down a bit.  The four-week moving average and continuing claims are watched more closely for changes. The labor market is considered to be improving when the four-week moving average goes below 400,000. If unemployment goes low enough it can put wage pressure on the economy and can cause increases in interest rates.

Leading indicator report came out as expected today.  The Leading Indicators report is composed of ten indicators designed to forecast the strength of the economy six to nine months into the future. The ten indicators are picked from different parts of the economy and are chosen because of their relevancy and accuracy. They are each given equal weight when applied to the composite index.  This report basically give you the state of the economy and can show whether we are moving forward as a whole.  Colorado Home Mortgage Loan rates don’t typically move with this indicator, but it does give us some idea whether we are in a recovery state or not.

Finally the Philadelphia Fed Index is used to get a sense of the Manufacturing component which accounts for about 20% of our market.  The Philadelphia Fed Index is considered to be a good indicator of changes in everything from employment, general prices, and conditions within the manufacturing industry. Manufacturing is considered to be a precursor to future economic conditions and it lays the groundwork toward economic recovery. For example, in a poor economy if manufacturing starts to pick up there is an expectation that the economy will soon follow behind.  In short the reports don’t lie the economy still needs help in a bad way, and normally when the economy suffers Colorado Home Mortgage Loan rates show improvements. 

The Federal Open Market Committee released their March meeting minutes to the public today.  Colorado Home Mortgage Loan rates tend to move up or down depending on how investors view the information being released.  The biggest issues for investors buying Mortgage Backed Securities is the FOMC outlook on inflation.  Inflation will always devalue a  long term investment like MBS which in return will cause Colorado home mortgage loan rates to jump up.  Today’s report however did not have the substance to move the market in any particular direction.  Normally when the minute reports are as vague as they are today, investors will become cautious causing rates to come down a bit.  Today we did not experience this and it was actually the lack of activity that brought the price of the bonds down this morning.  The reason that activity drives pricing on bonds up and down can be explained in simple economic terms.  Supply and demand.  Low activity signals low demand, and when you have a number of suppliers all trying to sell their bonds, a price reduction is needed to attract more demand.  When the price of bonds drop Colorado home mortgage loan rates will rise.  The lack of activity can only be explained right now by the degree of uncertainty investors are showing in their investment strategies.  When there is uncertainty it would be unwise to move  your investments back and forth on a daily basis.  Moving in and out of the market will never give the investor the longterm results their investors seek from a portfolio.   The wait and see approach typically takes over.  As soon as more data comes in that signals tough times ahead, the sooner we will see rates drop again.  Friday’s seem to be a good day for rates, though historically Friday’s rates have been higher.  I would expect rates to drop a bit in the next day or two and we will anticipate that the remaining weeks data will not paint a pretty picture on the economy.  A FLOATING recommendation has been issued but  remember to Target a rate and if your Colorado home mortgage loan rate expectation are met then LOCK.  Best of Luck and God Bless.

Check out www.coloradomortgagebanking.com/news for some additional news on Colorado home mortgage loan information.  Early this morning TPG a Texas investment company offered WAMU $5 billion dollars in an effort to block JP Morgan from buying WAMU.  WAMU has hit some difficult times with some of their Mortgage Portfolio’s and has recently become an easy target for take over.  As their stock decreases in value other institutions become very interested in purchasing a first rate bank at a discount.  This is what we saw in the last week or so, and just before JP Morgan could build enough momentum to purchase the stock out right, TPG infused WAMU with $5 Billion dollars under terms yet to be disclosed.  This sent the stock sailing and pushed investors out of Mortgage Backed Securities and back into the stock market.  The recent activity in the stock market has caused Colorado home mortgage loan rates to start out a little higher this morning.  These rates have pretty much stayed unchanged throughout the day.  Other Reports began to trickle in late this morning indicating a down grade in profit expectation for a couple of industry leading companies.  These reports caused several investors to bail out of stocks late in the morning defusing any of the stock markets gains from earlier in the day.   Overall Colorado home mortgage loan rates would have seen greater increases in their rates had the market not reported any derogatory news, but as it stands it was a day of ups and downs, bringing us right back to where we started.  Colorado home mortgage loan rates also suffered a bit due to the lack of activity in volume.  We expect to see more activity as the week progresses and should see rates impacted by the economic reports due out throughout the week.  If the trend continues as anticipated we should see rates fall back into Fridays lows.  FLOATING will not be a high risk, but please  remember that if we can lock you in around the 5.5% range then LOCK.  Over the last year 5.5% seems to be that low point and even if rates go a little lower you will still be locked into a Colorado home mortgage loan you can live with.  Good luck and God Bless

To get up to date Colorado home mortgage loan inforrmation please visit my other site www.coloradomortgagebanking.com as well.  Colorado home mortgage loan rates have seen a slight increase over the last few days.  The primary reason Colorado home mortgage loan rates have increased stems from a variety of Economic news being reported by the press.  The lack of actual Economic Data late last week and early this week has created a void of information that investors so desperately need in order to make investment decisions.  Colorado home mortgage loan programs are impacted by the price of mortgage backed securities.  Currently mortgage back securities are trading lower today then last week causing interest rates to increase.  Investors are currently tuning into what the federal reserve will do, and all indications point to a continued interest rate reduction to help stimulate the economy.  Well when the federal reserve lowers interest rates the fear of inflation comes to the surfice sending a message to investors that Colorado home mortgage loan rates will start to increase because of the risk associated with mortgage backed securities.  It is very simple to monitor where rates are going.  Rates are influenced by two primary concerns inflation or economic news, which ever  dominates the headlines will be what influences rates. Rates will go up, if we have recessionary presures and bad economic data causing Colorado home mortgage loan rates to go down.  Right now we are at the top of the 5th inning and inflation has made its way front stage and recently the release of better then expected new home sale numbers indicate that rates are moving up.  We may see a bigger increase in Colorado home mortgage loan rates by the end of this week and the beginning of next week as economic reports come out.  I will watch this closely and if anything is leaked out prior to the reports coming out we should see it reflected in the Mortgage Backed Securities market.  Take a strong look at where the rates are tomorrow and if it is acceptable and you are being quoted a Colorado home mortgage loan rate you can work with then locking will take the risk out of floating until after the economic data comes it.  Think about it investors over react so rates will probably increase on Wednesday and if Thursday reports (GDP Report) comes in better then expected rates will go up again, If the report comes in below expectation then rates will probably remain the same until Fridays PCE (Personal Consumption Expeditures data) comes out and if that comes in below expectation then rates will get better.  So where do you benefit, well you benefit from a lower rate if the news continues to come in worse then expected.  So again If you like what you are being quoted on your Colorado home mortgage loan today don’t hold out hope for an additional .125% lower interest rate.  Listen to your gut and put some value on peace of mind and locking tomorrow will be the right choice.  I hope I am wrong and will monitor it closely tomorrow.  Read the blog tomorrow to see what  the market is doing.  Current recommendation is to lock due to the likelyhood that Mortgage Backed Securities will continue to drop causing rates to go up.  Give me a call if you have questions, Best of luck and God bless

Just a reminder to anyone wanting additional informatio on Colorado home mortgage loan programs, I do write a blog on Coloradomortgagebanking.com/news and homestly you I never know how different the Colorado home mortgage loan information will be.  I typically write for that site first so it tends to be more technical Colorado home mortgage loan data then what is written here, but the message should be the same.  The market continues to see economic reports trickling in today, and so far it should be good news for Colorado Home Mortgage Loan rates.   The Jobless claims report was worse then expected and the LEI (Leading economic indicator) shows where the economy is and often indicates Recessionary presures.  Last look at Mortgage Back Securities indcate even though the Dow has hit the 150 point increase that Colorado Home Mortgage Loan rates are holding steady.  Most mortgage anaylsts are say that Floating can pay off for an even better Colorado home mortgage loan rate.  I am going against the curve today and have been that way for 4 days now and my recommendation is to Lock.  Monday’s Colorado Home Mortgage Loan rates continued to show the same strong rate trend from Friday and through out the week analysts have been going back and forth on floating or locking your Colorado Home Mortgage Loan. I have been advising everyone to Lock.  Rates have only really moved about 1/8 of a point or .125% up or down since Friday and it still remains good.  Colorado Home Mortgage Loan programs 6 weeks ago where .75% higher and anyone of my clients would have killed for today’s Colorado Home Mortgage Loan rates.  LOCK LOCK LOCK take the guessing out of it.  Rates are good and I should see my entire Colorado Home Mortgage Loan pipeline locked by the end of the day.  Stay tuned this evening for the days report and until then God Bless:-) 

If you currently have a colorado home equity loan you may have noticed your rate going down.  Colorado home equity loan programs are one of the few programs that tie directly to the Federal Funds Rate.  The Federal Funds Rate is a short term interest rate given to banks to meet reserve requirements.  When the Federal Reserve lowers this rate it stimulates lending activity and in return stimulates the economy.  If you have a Colorado home equity loan it may be a good time to call your lender and see if the have a Colorado home equity loan that you can lock in as a fixed rate.  Even if the Federal Reserve intends to continue to lower this rate which is now at 5.25%, it still might be a good time to lock a fixed Colorado home equity loan into place.  I have several lenders that offer these Colordo home equity loan programs for free which can do amazing things for your cash flow.  With that said lets quickly talk about the Mortgage back securities market which has had activity flowing like a tropical storm in the last few days.  The question continues to be what will impact us more bad economic news or inflationary pressures.  Colorado home mortgage loan rates will either go up or down depending on the flavor of the moment.  This couldn’t be more true for the Colorado home mortgage loan market as it was yesterday and today.  Mortgage Back securities started off high as economic data trickled in sending Colorado home mortgage loan rates down, but as the Federal Reserve meet and Bernanke spoke investors stayed tuned.  Like a pack of wolves circling the herd waiting for some type of slip anything really to react to investors choose to read into Bernanke statements about continuing to lower interest rates to keep the economy moving.  As the head of the Federal Reserve, Bernanke sent investors into a frenzy late yesterday and early today with concerns about inflation.  Inflation typically increases when spending is high.  When the federal reserve lowers short term rates, money becomes cheaper and people tend to spend more, causing Colorado home mortgage loan rates to go up, but on a lighter note sending Colorado home equity loan programs down.  Sorry for not updating the blog early on, it got crazy today and my clients needed me.  Stay tuned early tomorrow as I update this site with real time Colorado home mortgage loan information that you can react to immediately.  If you have question please contact me directly I enjoy talking to all of you, until then good night and god bless.