Colorado Home Mortgage Loan

Colorado Home Mortgage Refinance Loan rates are taking a hit first thing this morning in anticipation of the FOMC meeting minutes due to be released.  The primary reason for increased Colorado Home Mortgage Refinance Loan rates this morning stems from the lack of volume currently trade on the Mortgage Backed Securities floor.  The FOMC minutes are released at 2:00 PM EST on pre-scheduled days. Minutes are prepared to provide the necessary information to Congress and the public on policies and actions of the FOMC. The summary description of economic and financial conditions contained in these minutes is based solely on the information that was available to the Committee at the time of the meeting. The minutes of each meeting of the Federal Open Market Committee are made available a few days after the next regularly scheduled meeting. For example, the minutes of the first meeting of the year are released a few days after the second meeting of the year.  It is what the FOMC says in these minutes that will impact the direction Colorado Home Mortgage Refinance Loan rates will go.

We have implemented a LOCKING strategy over the last couple of days, and we are still advocating clients to LOCK.  5.75% is the right pricing point to lock at the moment as it appears rates may climb a bit today and tomorrow.  We may even see rates change a bit over the next couple of hours if the Mortgage Backed Securities Market continues its downward pricing trend.  Remember that we have an inverse relationship with the price of bonds and Colorado Home Mortgage Refinance Loan rates.  When Bond prices drop Colorado Home Mortgage Refinance Loan rates increase.  The opposite is said when bond price go up.

Here is a look at the Mortgage Backed Securities market so far.

This is a graph I monitor everyday and it is simple to see when the trend is below 0.00 Colorado Home Mortgage Refinance Loan rates are expected to go up.  If  the trend is above 0.00 it is safe to assume that Colorado Home Mortgage Refinance Loan rates will do down.  The trick here is to determine how the outside influences will move this graph.  If we have poor economic data coming in the graph will trend up if the economic data being released comes in better the expected the graph will drop.  This in a nutshell is how Colorado Home Mortgage Refinance Loan rates are expected to go up and down over time.  Our job is to get in about 12 hours before that happens and predict the direction.  More importantly we take the overall trend and focus on where it may go in the long run.  Its tough to determine where Colorado Home Mortgage Refinance Loan rates will go, but not impossibleJ

We have Jobless claims being released tomorrow and New home sales on Thrusday.  Both these reports will impact the market and at the momement I believe both reports will show negative economic data.  This should mean that Colorado Home Mortgage Refinance Loan rates should not spike too much this week, but the will not improve to a point where FLOATING makes sense.  If you have not LOCKED in your Colorado Home Mortgage Refinance Loan rate yet then LOCK.  The Risk/Reward will not pay off in the long run.  Please call me with any of your Colorado Home Mortgage Refinance Loan rate questions.  Also check out my other site www.coloradomortgagebanking.com/news when you have time.

Daniel

Jobless Claims pretty much came in as expected.  You can get a detailed explanation of what this report is and how it impacts the market by reading yesterday’s article.  The data released today indicated that Jobless Claims were about what was expected.  The Consensus on this was around 370K and the actual number came in at 371K.  This is also good news for Mortgage Backed Securities, which in return drives Colorado Home Mortgage Refinance rates down.

Industrial Production also had worse then expected data released today. Industrial Production currently shows contraction in the economy and it was expected to do so again today.  Experts put the contraction or negative growth factor around .3%.  When the data was finally released the actual negative growth factor came in .7% which is significantly lower then expected and again created more demand for Mortgage Backed Securities.  Colorado Home Mortgage refinance rates saw continued improvement after the release of this report.

We had a variety of Economic reports coming out today which will impact Colorado Home Mortgage rates.  Colorado Home Mortgage rates are influenced by the activities in Mortgage Backed Securities, which consequently are influenced by real time economic activity.  Real time Economic activity will be reported by Economic reports which are updated 5 or 6 times a week.  Today’s economic reports had a variety of mixed signals for investors.  On a positive note GDP, Corporate Profits, and Jobless claims all came in as expected.  Only one report came in worse then expected and that was PCE (Personal Consumption Expenditures).  This report measures inflationary pressures due to spending habits displayed by consumers.  When PCE figures are low inflationary figures will also trend low.  Normally this would be a very good sign for Colorado Home Mortgage rates.  I still believe that rates will improve slightly over the next week or so baring any major economic anomaly forcing rates up.  Based on what we are seeing today rates will go up slightly.  Investors who used caution before in their investing techniques may choose to be a little more bullish today.  This boost of confidence really does not make much sense to me, because it is based on the fact that investors predicted the economic reports correclty today.  What they will come to find out very quickly is that these numbers are still bad for the economy so bad in fact that the economic data now coming out have reached the low points of 2001, and yes we were in a recession at the time.  Look for Colorado Home Mortgage rates to follow a bit of an up and down approach, but waiting for a low period may pay off as early as late next week.  Lets just hope rates do not move up to much to off set the risk of gambling on lower interest rates next week.