Colorado Home Mortgage Loan

Colorado Home Mortgage Refinance rates saw some more bad news hit the market.  Bad economic news will typically be good for Colorado Home Mortgage Refinance rates.  The reports that came out today should have lowered Colorado Home Mortgage Refinance rates, but that just was not the case.  Instead Colorado Home Mortgage rates jumped up as investors moved quickly to sell off bonds.  You can read more about the Profit Seekers in bonds by reading www.coloradomortgagebanking.com/news.  I will be using this site to talk specifics about economic reports currently released and due to be released in the near future.  The biggest mover of Colorado Home Mortgage Refinance rates are economic data reports and is why I focus this site on the explanation of these reports. 

New Home Sales for April posted 526K which was 6K higher then expected.  This caused investors to regain some lost confidence in the market and we saw investors selling off bonds to free up funds for equity trading.  We also had the Median home price report a 1.1% increase year over year.  I have a lot of people that ask me about home prices and the answer is simple; homes will retain their values over time and will increase in value over time.  This is the way it has always been and this is how it will be.

Colorado Home Mortgage Refinance rates saw some additional active after the release of Consumer Confidence.  Consumer Confidence measures consumer’s interpretations on where the economy is and where the economy is going.  It is a basic feeler for what people think about the economy.  Colorado Home Mortgage Refinance rates tend to do better in times where Confidence is low.  The primary reason is that investors know spending will be lower during tough times therefore forcing them to invest in safer financial instruments like bonds.  Consumer Confidence came in at 57.2 where the consensus was 62.0.  This in itself should have moved Colorado Home Mortgage Refinance rates down, but other market activities held it in place.  However it should be noted had confidence readings not been so poor the potential for Colorado Home Mortgage Refinance rates to increase even more would have been great. 

Finally, Colorado Home Mortgage Refinance rates will be impacted by several reports over the next three days.  We will maintain a FLOAT strategy, but we will ask you to use some CAUTION.  This is simply one persons predictions and I am forecasting that the economic data being released over the next couple days will favor Colorado Home Mortgage Refinance rates.  The experts have forecasted some poor numbers and the two biggest reports coming out Durable Goods and Preliminary GDP seem to be in areas of the economy that are not reporting stronger then expected numbers.

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.)  This report will Provide 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 Home Mortgage Refinance 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. 

The GDP report gives a complete picture of the state of the economy as well as estimates for future output based on supply and demand.  Advance GDP is the initial reading each quarter. As more data is collected, the Preliminary GDP release reflects the first revision. The Final GDP report for the prior quarter is released near the end of the current quarter.  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.

We will also have Jobless Claims being reported which will either help or hurt Colorado Home Mortgage Refinance rates depending on the direction GDP and Durable Goods force rates to go.  The report works well with GDP and should help dictate Colorado Home Mortgage Refinance movements later that day.  Please call me with any Colorado Home Mortgage refinance questions and have a great evening.

Daniel