Colorado Home Mortgage Loan

Colorado Online Mortgage rates hit a point today where Locking made sense.  We had two Economic reports coming out today that made movements in the market.  Colorado Online Mortgage rates dropped as a result and 5.75% became available without any cost to the borrower.  The benefits that the decreased Colorado Online Mortgage rates had on the market were short lived and by the end much of what we gained early on where lost to profit seekers.  Profit seekers are investors who sell and trade bonds in a short term cycle.  Often they will enter the Mortgage Backed Securities market buying bonds slowly as the price drops, and will sell immediately the second the price point hits into profitable ranges.  Depending on how many profit seekers we have can create and artificial high and low point in the market.  I believe we saw a little bit of this late today.  The Mortgage Backed Securities market found the price of bonds dropping due to the overwhelming supply being offered into the market.  This caused much of the gains created from the poor performing economic data to go away by close of business today.  We will continue to push a lock recommendation while rates maintain the 5.75% range, make sure there are no additional costs to getting this rate. 

The market movers today came from two reports, Housing starts and Consumer Sentiment.  Housing starts came in higher then experts predicted, which would normally be bad for Colorado Online Mortgage rates.  The higher then expected numbers normally indicate that housing and mortgage volume will be high, which in return means that our economy is moving along as expected.  Lower numbers indicate less spending and in return put investors in a conservative buying mode.  The housing numbers were high, but the numbers were inflated a bit by multi-family units.  It appears that the actual Single Family Housing numbers fell, while Multi-Family permits increased.  The increase in the Multi-Family permits out weighted the Single Family Housing decreases, which caused the data to report better then expected growth in this section.  Colorado Online Mortgage rates should have reacted negatively, but the fact that Single Family Housing numbers decreased again did not sit well with aggressive investors.  We should also note that we are at 50% of what housing numbers were reporting back in 2005.  We have a long way to go in this data, before we can say the data was positive.

Consumer Sentiment also came in and this number came in at a 28 year low.  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.  This index is due out on Monday.  The numbers were so poor that it raises real concerns about what the people in the economy really think, and what their buying habits will be in the months to come.  If buying is low then returns are low.  When investors see low returns they tend to want to spend money on safer investments.  This created some real volatility in the Mortgage Backed Securities market this morning and caused Colorado Online Mortgage to drop.  When the drop took place our office went to work locking in loans not currently locked.  At this point we are pleased to say that all loans currently submitted are locked at rates at or below 5.75%.   If you have a loan somewhere else I would make the call to see if it is locked and if not go ahead and lock it.   If you have some time Check out www.coloradomortgagebanking.com/news for some of the basic Float/Lock recommendations.  Best of Luck and God Bless.

Daniel

Colorado Home Mortgage Refinance loan rates will certainly have some improvement today on news that Consumer Sentiment has hit a new 20 year low.  In 1982 the U.S. found itself recovering from the worst Colorado Home Mortgage Refinance loan rates of all time.  It was obvious at the time that because jobless claims were high, interest rates were unbearable, and inflation was in double digits, that people were feeling beat and uneasy with the direction the economy was going.  Well at the time Consumer Sentiment was at 62.2.  Consumer Sentiment rating shows that Americans today feel about the same as Americans in the early 1980’s.  So do we now have clear and desisive proof indicating that we are in a tough economic situation?  Consumers certainly believe that.  When Consumer Sentiment is low consumers choose to save and invest in low risk investments.  These investments include, but are not limited to, Mortgage Backed Securities.  So for the short term, at least for today, Colorado Home Mortgage Refinance Loan rates are better.  I have yet to see any major shifts in pricing, but we will continue to monitor that as the day progresses.  Regardless, Colorado Home Mortgage Loan lenders released rates lower today, stopping the daily rate increases shown in the market over the last 96 hours.  LOCKING today and capturing some of the losses from yesterday will be a good choice if you are closing soon.  If not we have more economic news in store early next week.  Next week will be an interesting week for Colorado Home Mortgage Refinance loan rates.  Inflationary reports will be released and investors will certainly respond to what they hear.  Colorado Home Mortgage Refinance Loan rates will probably start off a little higher on Monday in anticipation to what Tuesday’s and Wednesday’s reports will say.  Once the information is released rates will respond quickly.  Colorado Home Mortgage Refinance Loan rates will certainly increase if inflation reports higher then expected, likewise they will drop if the reports come in as expected.   One nagging issues for inflation’s next week, will be the cost of energy factored into the inflationary data.  This is expected to have negative results on the data.   However, Given the state of the economy excluding energy, inflationary pressures should come in at or below expectation.  The make or break figure will be how much energy contributes to the overall inflation calculation.   Those looking to FLOAT may see the gamble pay off.  Tuesday and Wednesday will tell us where we stand.   The last two Inflationary reports came in as expected just an FYI. . .