Colorado Home Mortgage Loan

Colorado Mortgage rates have improved for the 2^nd straight day, giving us hope that Colorado Mortgage rates may start looking competitive sooner then later.  Most of the Colorado Mortgage rate improvements can be contributed to growing concern for the economy and a decreased emphasis in inflation.  It only took two days and 4 separate speeches by the Federal Reserve to increase Colorado Mortgage rates by almost 1%, it may take weeks to recover from the increases.  So far most of the data being released seems to favor Colorado Mortgage rate improvement.  We saw this happen yesterday with the release of the Producer Price Index.  Producer Price Index came in as expected and all the hype related to inflation concerns seem to dissipate with the report. 

Today we have no scheduled Economic Reports to help the Market.  Investors will be looking at Headlines to determine their buying motivation in the Colorado Mortgage Securities market.  We has some very unexpected news hit the securities (stock) market today as Fed Ex reported earnings far worse then expected.  The stock market appears to be down over 100 points and may hit the 11K mark by the end of this week.  Colorado Mortgage Rates always do well when news in the security markets appears to be bad.  Morgan Stanly also reported very negative profit news and their stock is currently trading about 10% lower then yesterday.  So in a day of very little economic data it appears that the headlines have increased to momentum to buy bonds.  This new demand will increase the price of bonds and lower Colorado Mortgage Rates.  Take a look at www.coloradomortgagebanking.com/news if you get some time to compare other market moving indicators, but regardless of which site you tune into it is clear that you will not lose by FLOATING until tomorrow. 

Stay tuned for tomorrows leading indicator report, Jobless Claims, and Philadelphia Fed Index to get a step up on whether locking will be necessary.  Everything I am seeing in the market seems to indicate that the economic data due to be released should come in as expected and no real surprises are in store.  If that is true then Colorado Mortgage Rates will continue its downward trend.  We learned something over the last week or so and that is the Federal Reserve is not as predictable as they have been in the past.  I still have a lot of faith in Mr. Bernanke but he still has a lot of critics out there thinking that he may be in over his head.  Colorado Mortgage Rates appear to be impacting new loan applications which have hit its lowest mark since 2006.  When you are shopping for a Colorado Mortgage it is critical that you work with someone who understands the market.  We will give you the Colorado Mortgage that makes sense for you.  Call me with your Colorado Mortgage questions and have a great day.

Daniel

Colorado Mortgage Rates appear to be on their way back.  We had a couple of economic reports to talk about today.  CPI, and Consumer Sentiment were released earlier this morning and both reports created some positive movement for Colorado Mortgage rates.  In a week were Colorado Mortgage Rates hit an all time High for the year, it was nice to see that Friday the 13^th created the relief we needed.  It is nice going into a weekend knowing that Colorado Mortgage Rates should not see any more increases for the week.  We will need to wait until next week to see if we can expect any additional relief as PPI will report on Tuesday.  Colorado Mortgage Rates will certainly see continued relief once the second component in the inflation reporting picture comes out.  We are hoping that Producer Price Index report comes in as expected.  Here are today’s Colorado Mortgage summaries:

Consumer Price Index is used to gauge changes in inflation and markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the Colorado Mortgage markets adjust interest rates to reflect those changes. The effect of these changes is seen across all markets, equities, bonds and mortgage backed securities. As a general rule, higher inflation is negative for Colorado Mortgage markets.  Our CPI index reading came in at .6% which was actually slightly higher then expected, but not enough to create the surprises expected with inflation.  Colorado Mortgage Rates reacted very well to the information.  Core CPI which takes out some volitle components in the price index like food and energy, is believe to be the better measure for inflation  Core CPI came in at .2% which was exactly in line with expectations and again created some very positive movements in the Colorado Mortgage Markets.

Consumer Sentiment is used to gain insight into possible future consumer spending. It is almost identical to consumer confidence but it has two readings per month, preliminary and final readings. The consumer expectations portion is used for the leading economic indicators index.  Investors look at this to gain perspective on what people might do as it relates to spending.  High spending creates positive Economic movement.   Colorado Mortgage rates almost always increase when readings on Consumer Sentiment are high, Colorado Mortgage rates will also decrease when Consumer Sentiment readings are low.  Consumer Sentiment came in at  Surprising 56.7 which is the lowest reading since the double digit interest rate epidemic of the 1970’s.  Colorado Mortgage Rates definitely responded positively to this information. 

In Short we are recommending a FLOAT recommendation because nothing in the headlines or economic data seem to indicate any issues with Colorado Mortgage Rates going up.  You can also check out www.coloradomortgagebanking.com/news to get some additional LOCK or FLOAT recommendations.  Right now we are just holding out for the last inflationary report of the month due out on Tuesday, until then have a great weekend and call me with your Colorado Mortgage Rate questions.

Daniel

Colorado

Mortgage Rates are determined by the Mortgage Backed Securities market.  Most people refer to this market as the bond market.  The bond market competes with the equities market to attract demand from investors.  Colorado Mortgage Rates are determined by the demand shown in the bond market.  The relationship between Mortgage Backed Securities pricing and Colorado Mortgage Rates follow an inverse pattern.  The best way to look at the inverse relationship is to watch the price of bonds, when the price of bonds goes up, Colorado Mortgage Rates will fall. This will also hold true as bond prices drop, Colorado Mortgage Rates will naturally go up.  This trend does not change for any reason, so what we have to look for in order to properly determine Colorado Mortgage Rates, are the factors that increase or decrease demand in the bond market.

Demand in the bond market will normally be determined by investor’s adversity towards risk. Investors are inherently conservative and look for every opportunity to eliminate risk from their portfolios.  Colorado Mortgage Rates also use risk factors when determining its final rate which we will elaborate later.  Right now we will simply focus on the risk associated with investments. Bonds are considered safe and sometimes risk free investments.  Because the risk is low the returns are also low.  Equities (Stocks) on the other hand will have high risk associated with them, but in order to compensate for the risk, stocks will need to offer a much better return. Investors look at both markets and in times of bad economic progression bonds become a safer investment.  In times of good economic progression Stocks become a good investment. Colorado Mortgage Rates will typically come in lower during low economic growth periods and likewise Colorado Mortgage Rates will suffer during good economic growth periods.  So if you simply want to get a feel of where Colorado Mortgage Rates are in relation to historical data look at what is going on in the economy.

What is going on in the economy is heavily monitored by investors when determining how aggressive they will be in buying and selling bonds.  Economic data reports are the primary driver of investor behavior in the markets.  These economic reports come out in a verity of formats. Some that you may be familiar with are: GDP, Consumer Sentiment, Cost Price Index, and Jobless Claims just to name a few.  Colorado Mortgage Rates react immediately on the data released by these economic reports.  The economic standings are dictated by what is said in the data.  If the data says we are in an economic downward spiral investors quickly jump out of the equities market and reinvest in the bond market.  The increased buy demand drives to price of Mortgage Backed Securities up which drives Colorado Mortgage Rates down.  Obviously, Colorado Mortgage Rates have the opposite movement when the economic data released is better then expected.  This is how core Colorado Mortgage Rates are determined. 

The last component impacting Colorado Mortgage Rates are the loans risk parameters.  As I stated before investors demand a higher return when they take on more risk.  Colorado Mortgage Rates are no different in the returns required for the risk taken.  Colorado Mortgage Rates start off at a base risk factor.  Normally clients with a 720 or higher credit score, Full Documentation can be verified for their income, and a minimum of 20% down payment has been made will qualify under the least amount of risk.  These type of loans will certainly carry a low risk premium and will offer the best Colorado Mortgage Rates available.  Once the loan begins to add risk factors like 100% financing or credit scores below 720, Colorado Mortgage Rates begin to go up.  This is the most basic way to explain how Colorado Mortgage Rates are determined, and I would encourage you to contact us directly with any other Colorado Mortgage Rates questions you might have. 

Colorado Mortgage rates jump up again today on better then expected durable goods reporting.  Durable goods came in at -.5% which is a bit better then the -.7% forecasted by investors.  The key factor impacting Colorado mortgage rates were the core components in Durable Goods, which actually achieved a 2.5% growth rather then the .7% expected increase.  Investors viewed the data in a positive light giving new confidence for investing.  Colorado Mortgage rates increased as the demand for Mortgage Backed Securities dropped.  Right now we should be seeing Colorado Mortgage rates around 6.0%, which is the highest point achieved this month.  We will continue to monitor this closely.  Today we will continue to support a FLOAT recommendation.  Locking in now will only have you locking at this month’s highest point.  We are expecting a variety of economic reports over the next couple of days which will create movement in Colorado Mortgage rates.  The reports to watch for this week will be Core PCE and Chicago PMI.

The Personal Consumption Expenditures report is basically a measure of goods and services targeted towards individuals and consumed by individuals. There are two broad indexes of consumer prices in the United States: the Consumer Price Index (CPI) and the PCE index. They are similar in many respects, but there are some important differences which can lead to large gaps between CPI and PCE inflation rates at times. The PCE uses a chain index which takes into account consumers’ changing consumption due to prices, while the CPI uses a fixed basket of goods with weightings that do not change over time. Economists frequently focus on the Core rate, which excludes the volatile food and energy components.  The PCE is the Fed’s favorite inflation indicator and Colorado mortgage markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the Colorado Mortgage markets adjust interest rates to reflect those changes. The effect of these changes is seen across all markets, equities, bonds and mortgage backed securities. As a general rule, higher inflation is negative for Colorado Mortgage rates.  

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.  It is looked at as a good indicator for future inflationary pressures and can have a big effect on the markets. Changes in prices paid by manufacturers can be indicative of accelerating or decelerating inflation and future manufacturing activity can be predicted by changes in new orders. Strength in the manufacturing sector may be a sign of a strong economy and is usually negative for Colorado Mortgage bonds.

As I said over the last couple days, activity in the Colorado Mortgage rates market will be high this week.  Nothing moves Colorado Mortgage rates in any specific direction like inflationary pressures.  These reports will release inflationary numbers and the Colorado Mortgage market will react immediately.  If the inflationary numbers are high, Colorado Mortgage Rates will increase.  If the numbers come back lower then expected then a Colorado Mortgage rate recovery will be in place.  We will have to sit tight until Thursday or Friday of this week to see any real movement.  If you have some time check out www.coloradomortgagebanking.com/news I look forward in assisting you with your future Colorado Mortgage needs.

Daniel

Colorado Mortgage rates saw slight improvements on today’s economic reporting.  We had two reports both reporting on the same subject material, inflationary pressure.  PPI and Core PPI were both released today.  These reports create movements in the Mortgage Backed securities Market and both impact Colorado Mortgage rates.  The Producer Price index for last month showed a 2.0% positive growth increase in pricing.  The expectation was 4%, signaling a lower then expected inflationary number.  This was very good news for Mortgage Backed Securities and allowed Colorado Mortgage rates to see some improvements on the day.  However, with the good news came some bad news, when the Volatile Energy and Food components were taken out of the data, Producers Pricing Index came in at 4% whish was 2% higher then expected.  All in all a very mixed day as it relates to the economic data released on inflation. 

Producer Price Index 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 volatile food and energy sectors and gives a clearer picture of the underlying inflation trend.  Economists pay the most attention to the PPIs for finished goods, intermediate goods and crude goods. The PPIs measure inflation of prices on the producers’ end and often that inflation gets passed onto the consumer and CPI. Inflationary pressures seen in PPI can help predict future pressures on consumer products’ prices. As a general rule, higher inflation is negative for bond markets.  Inflation creates a devaluation of current bonds which causes bond price to decrease and Colorado Mortgage rates to increase.

The mixed economic data, though important, was not the market mover for today.  The Market mover came as a result of poor stock performance.  The stock market lost some ground today and most experts believe that the stock market is still a little over valued.  This over valued belief creates some concerns for investors, which pushes portfolio strategies to focus on bonds.  We will continue to have a LOCKING recommendation for Colorado Mortgage rates at least until tomorrow afternoon.  Rates are looking good and if you can get below 5.75% then jump all over it.  For .5% cost today, I can actually get your 5.5% which means that we may have a new locking floor established by the end of the week.  We will need to watch rates, but anytime you can get a Colorado Mortgage rate at 5.75% or better you will ultimately be on the winning side of your rate lock.  If you have Colorado Mortgage Rate questions please feel free to call me.  In the mean time have a great evening.  Don’t forget to look at my other article at www.coloradomortgagebanking.com/news

Daniel

I am predicting that the Economic Reports tomorrow will report GDP and Chicago PMI at or below expectations.  These reports if my projections are accurate will cause Colorado Mortgage Rates to drop below the current pricing floor.  This drop will allow us to secure our rate of 5.75%.   This will also open up the door for risk takers to drop below 5.75% over time.  We saw some continued improvements with Colorado Mortgage rates throughout the day, but much of the gain saw this morning was lost again by this afternoon.  The late day loss was due to investors concern about what these two  economic reports will actually say.  With everything we have seen in the market so far, I cannot imagine these reports showing any type of improvement in the market.  The problem is where investors have set the bar.  The bar continues to show expectations far below normal ranges.  Basically the market expects bad data.  If the numbers come in at or below expectations, investors will move to buy Mortgage Backed Securities.  This in return will improve Colorado Mortgage Rates.  

The only other movement we will see in Colorado Mortgage Rates will be the markets interpretation on the FOMC (Federal Open Market Committee) meeting.  The FOMC will release a variety of statements indicating their plan to stimulate the economy.  The FOMC will be expecting another .25% decrease in short term interest rates.  Interest rate decreases help the economy, but tend to be bad for mortgage backed securities.  When Short term interest rates are decreased, investors begin to be concerned with inflation, causing negative ripples in the Mortgage Backed Securities market.  With this said we will continue our FLOAT recommendation until tomorrow.  We are still projecting a decrease in Colorado Mortgage rates through the week.  Though the interpretation on what will be said by FOMC members can impact rates negatively, we just don’t see that happening tomorrow.  Inflation is what we need to watch for.  As each Member of the FOMC board begins to leak information we will all be keeping our ears open for inflation talk.  If the talk is light, Colorado Mortgage Rates will improve.  If for some reason great concern is raised for inflation by the board we will need to prepare for an immediate lock, as rates will certainly rise. Negative inflation news will send Colorado Mortgage Rates back into an uphill climb.  It is up for interpretation, but if the FOMC does anything surprising the market will react negatively.  We can just about get you 5.75% and expect that to be a reality tomorrow.  So far we are implementing another FLOAT recommendation because of how close we are to 5.75%.  LOCKING in the next couple of days may take the risk out of the market but floating for 10 days may get us under the 5.75% we have been so set on breaking through.  Stay tuned and remember to call me for your Colorado Mortgage questions. 

Colorado Mortgage rates continued it’s up hill climb today.  So far Mortgage Backed Securities are reporting about .25% increases in Colorado Mortgage rates.  The news over the last few days has not been favorable to Mortgage Backed Securities. There are a number of reasons why this may be taking place, but it certainly reminds me of exactly how difficult it can be to project exactly where Colorado Mortgage rates are going.  In last 3 weeks we have seen Colorado Mortgage rates increase and increase and it just does not appear that we have any relief in sight.  All the Economic data coming in during the last 3 weeks should have been favorable to Colorado Mortgage rates; however that has not been the case.  1Q profit reports seem to be the driving force over the last 3 weeks leaving economic data for the back page of your local newspaper.  So the question today will be how much longer will Colorado Mortgage rates go up? And what will the rate be at its high point?  Most of my clients have been quoted between 5.75% and 6.0% with the condition that we would monitor a lock request at 5.5%.  Colorado Mortgage rates don’t appear to be heading in that direction in the next 45 days.  I still believe that we are at a high point assuming that we have no major surprises in the stock market (Like Ambac see www.coloradomortgagebanking.com/news). We have some slow days ahead as it relates to economic data, and most of the companies have reported their profits for 1Q, so we should see the momentum return to a more predictable approach.  We have 3 big reports coming out on April 30^th all of which will impact the market.  The biggest report of the three will be GDP which so far has reported positive production numbers.  If this report comes in lower then expected we will see rates improve.  Consumer sentiment and Consumer Confidence comes out tomorrow, both of which should come in low.  So assuming the stock market news keeps itself out of the headlines, rates should improve and FLOATING remains my recommendation.  It is a bit scary to see where we are at compared to 6 weeks ago, but I have said this many many times, we are not out of the woods yet! We will see bad economic data continue to make the headlines and when this happens Colorado Mortgage Rates will get better.  With that said, I am changing the Lock Floor Recommendation from 5.5% to 5.75% still a good rate, but hitting that 5.5% in the next 30 days will be out right difficult.  Call me with any of your Colorado Mortgage questions. 

Daniel

Mortgage Backed Securities are showing some loss right now.  It has been an up and down day for Colorado Mortgage rates and so far we are looking less favorable then what was being reported an hour ago.  If the trend continues we may actually see pricing get a little worse today.  The Consumer Price index came in today right in line with expectations.  This in it self should have brought rates back in line, and we should instead, be experiencing some Colorado Mortgage Rate improvements.  The only rhyme or reason I can see causing change in the Mortgage Backed Securities, has to do with the Bullish approach investors are currently using in the stock market.  Some Corporate Profits are coming in as expected and investors are seeing that as a good sign.  What they forget is that though the profits are coming in as expect they are still coming in as CRAP:-)  Investors are like lemmings and I have said this many times.  One set of investors take a strong buy approach and the rest follow close behind, all of them thinking that someone knows something the other does not.  As soon as they realize that they are all dumb as posts, a rebound should be felt back in the securities market.  Colorado Mortgage rates should be seeing improvements right now, but so far that is not the case.  I believe that the improvements should be felt by the end of the week.  We continue to have economic reports through out the week and the second any of these reports remind us of where we are at as an economy, Colorado Mortgage rates should move back down.  FLOATING remains the recommendation in place.  We will keep a close eye on the Jobless claims report due out tomorrow.  This report by itself can bring things back into prospective.  Check out www.coloradomortgagebanking.com/news when you have a chance.

Daniel

Looking at the stock market this morning it has become very clear that Corporate profits will come in lower then expected.  Colorado Mortgage Rates should see some improvements by the end of the day.  When investors look for safe investments, Mortgage Backed Securities becomes a good choice.  We have not see a lot of data on Corporate profits yet, but insider trading should clue us in on what is expected.  These insiders tend to sell  just shortly before profits are reported and as you can see the market is currently down.  If the information coming out on Corporate profits were good news the market would be up right now.  Since the market is down we can only conclude that the information due out will be negative.   Colorado Mortgage Rates should see a nice improvement over the rates released this morning.  The only other obstacle we need to continue to monitor will be the supply of bonds being offered in the market.  The oversupply of bonds can off set any interest rate improvement expected in the next 24 hours.  Though this can be an issue, we should look at the reason why we have so many bonds being put on the market.  Maybe it is because the demand for these securities will increase in the near future.  Why will the demand increase?  Simply put these bond suppliers anticipate negative economic news in the near future and believe they will see prices increase for the bonds sold.  In the long run when the price of bonds increase interest rates will decrease.  This brings me back to my initial prediction that rates should improve by the end of the day and that we may have some good momentum in the near future.  FLOATING remains the recommendation in play, but remember if the rate makes sense to you then LOCK, rates are still pretty good in relation to rates over the last 2 1/2 years.  Call me with questions 719-314-1320  Best of luck

Daniel 

Bad economic news continues to be the top story in the market.   This has created a new demand for Mortgage Backed Securities.  Colorado Mortgage rates should see nice improvement today as bad economic news pushes investors towards Mortgage Backed Securities.  Unemployment figures came in at its worst level since 2003.  Also making headlines was the Employment Situation Report which reports a number of different employment related data.  The Employment Situation Report like the Unemployment report, did not have anything good to share.  This information will cause investors to move money out of high risk investments  making Mortgage Backed Securities a popular alternative investment.  Colorado Mortgage rates already released this morning show .25% better then yesterday.  This Colorado Mortgage rate reduction makes up all the ground lost in the last week.  If the trend continues we may see rates drop a little further by Monday or Tuesday of next week.  I always tell people be cautious of waiting to long to LOCK.  I have been burned way to many times to watch other people walk straight into fire.  When Colorado Mortgage rates are good then LOCK.   If Colorado Mortgage rates appear to be dropping in the near future, then FLOATING is recommended.  Right now I will give it about an 80% chance that rates will continue to drop into next week, but we will have to wait and see for that to happen.  Today if Colorado Mortgage rates drop to a point that is satisfactory to you then LOCK don’t wait.  Only LOCKING will guarantee you a Colorado Mortgage rate.  We have Economic reports due out just about everyday, and next week is no exception.  Investors are praying for some good news and if the economic reports next week show any light of hope Colorado Mortgage rates will begin to go up again.  I wrote both my blogs today and during that time I have had two Colorado Mortgage price alert changes for the better:-)  We will continue to Monitor Colorado Mortgage rates, but if you can get a Colorado Mortgage at 5.5% fixed then LOCK.  I can get that for you right now, which means LOCKING will be recommended.  If you want to ride it out Floating will not be too risky, it just will not guarantee a Colorado Mortgage fixed rate at 5.5%.  The choice is yours:-) 

Daniel