Colorado Home Mortgage Loan

Colorado Home Mortgage Refinance Loan Rates will be impacted by 4 economic reports Tuesday and Wednesday.  Consumer Confidence, Advanced GDP, Chicago PMI, and Finally information coming out of the Federal Open Market Committee meeting.  All of the data coming out of these reports will send signals to the market indicating economic stability.  As you know this information is vital to the pricing of Colorado Home Mortgage Refinance Loan Rates. 

Consumer Confidence has a direct correlation to consumer spending, which accounts for two thirds of the economy. Consumer Confidence also has some correlation with joblessness, inflation, and real income. Typically only changes of five points or more are considered significant with higher numbers pointing to greater consumer spending. There are other pressures that change consumer spending other than consumer confidence, inflation, joblessness, and regional business issues. Consumer Confidence is used to predict the direction of Consumer Spending but because of other influences, higher Confidence won’t always lead to higher Spending.  This report will have an impact on Tuesdays Colorado Home Mortgage Refinance Loan rates.

Colorado Home Mortgage Refinance Loan rates are also influenced heavily by advanced GDP.  GDP is a significant report for several reasons. It is the most encompassing picture of economic activity and when paired with the employment report gives a picture of productivity growth. The data is used to define business cycle peaks and troughs. Higher GDP points to accelerated inflation while lower GDP indicates a weak economy.

The Chicago PMI is measured by new orders, production, supplier deliveries, inventories and employment; asking for positive, negative or unchanged readings of each. A reading above 50% generally indicates that the manufacturing sector is expanding, and below 50% signifies contraction.  So far this year manufacturing shows signs of contracting.  Contraction in manufacturing is considered bad for the economy, but good for Colorado Home Mortgage Refinance Loan rates.

Finally the Federal Open Market Committee meet to determine new monetary policy direction for our financial markets.  So Far the Federal Reserve action has been to lower interest rates, which by 99.9% of Americans means interest rates are falling.  THIS IS NOT TRUE.  Lower short term rates means more liquidity more liquidity means more spending.  When the economy spends more it does stimulate the economy, but it also has very negative influences on inflations.  We all should know by now that high inflation means Colorado Home Mortgage Refinance Loan Rates will suffer.  We expect the information coming out of Wednesday Federal Open Market Committee meeting to signal a .25% short term interest reduction.  Anything higher will cause Colorado Home Mortgage Refinance Loan Rates to increase out of fear for inflation. 

I have Colorado Home Mortgage Refinance Loan rate information posted at www.coloradomortgagebanking.com/news  In the mean time let me know of any Colorado Home Mortgage Refinance Loan Rate questions you might have.  FLOAT remains our recommendation and you can read more about that at the site listed above.  Best of luck and seem my post tomorrow sometime after 1pm.

ADP’s numbers are in and so far nothing out of the ordinary.  They have reported employment numbers right in line with what investors expected.  Colorado Home Mortgage refinance loan rates did creep up a bit today, but this was still primarily from yesterday’s market activity.  Colorado Home Mortgage refinance loan rates moved up about .125% this morning and have pretty much maintained that level throughout the day.  I did however get a pricing alert from one of my investors late this morning, indicating a price improvement.  I believe the dust is settling from yesterday and investors are beginning to cash in on some short term stock profits by selling.  When investors sell off stock they typically move their money into safer investments like Mortgage Backed Securities.  When demand for MBS increases Colorado Home Mortgage Refinance loan rates will drop.  Several other reports came out today, but none of them caused any real movement in the market.  What we do have to remember is that the reports currently being released have not painted any good pictures for what is to come.  The news being reported still indicate that we are at some of the lowest points we have seen in some time and investors are aware of this.  As soon the tolerance for risk drops for investors,  the sooner the demand for Mortgage Backed Securities will increase.  A couple more reports indicating bad economic data should do the trick.  Look for rates to drop again by Friday, how much will depend on how bad the employment figures turn out to be.  Colorado Home Mortgage refinance lock recommendation remains as a FLOAT.  Be ready to LOCK quickly if the news on Friday comes out better then expected, but so far nothing has indicated that this would be the case.  This was probably the reason we saw a Colorado Home Mortgage refinance loan pricing alert for the better today.  Stay tuned and check out www.Coloradomortgagebanking.com/news  when you get a chance.