Colorado Home Mortgage Loan

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

Colorado Home Loan Rates hit 6.0% today for the first time in 6 months.  Though the rate appears to be disappointing we have yet to hit our 12 month high.  Colorado Home Loan Rates spiked as high as 6.25% back in November and it appears that rates today will be hitting its ceiling of residence at least for the moment.  Given the current market condition it appears that we may be seeing some relief in the weeks to come.  Over the last couple of days I have been writing about Colorado Home Loan rates and how Corporate profits have dominated investor behavior, while Economic reports have been ignored.   Well we finally had a report come in so poorly today that it could not be ignored any further.  Colorado Home Loan rates rebounded a bit, but not enough to change current Colorado Home Loan interest rates.  What did happen is that the upward climb we have been facing with Colorado Home Loan rates have finally stopped, at least for the time being. Colorado Home Loan rates started the morning in negative territory due to overnight selling of Mortgage Backed Securities.  It appeared that we were going to have another terrible day, but finally we had an economic report come in so low investors could no longer ignore it.  As a result we have seen Colorado Home Loan rates make up for a majority of the losses experienced in overnight trading.   Consumer Sentiment numbers were expected to come in low, so we were not surprised by preliminary reports indicating low expectations in this category.  What was surprising to investors was how low Consumer Sentiment actually came in at.  We now have people believing that we are in the toughest economic cycle since 1982.  This negativity for the economy will translate into better Colorado Home Loan rates over the next few days.  We should keep a close eye on our next report which will be The Consumer Confidence Report due out on the 29^th.  This report mirrors Consumer Sentiment and given the preview we got today investors may be more likely to buy Mortgage Backed Securities sooner then later.  This sudden increase in demand will translate into a momentum shift which should push Colorado Home Loan rates back down a bit.  Let’s not forget about our big reporting day, April 30^th.  No matter how you look at it we have some market moving activities in store, the question is how will it impact your Colorado Home Loan rate?  We believe that better rates are on the horizon and because we feel rates will come down will maintain our FLOAT recommendation.  We are moving up our Lock rate recommendation from 5.5% to 5.75%.  We expect Colorado Home Loan rate reductions over the next week or so, but we do not believe that we will hit the 5.5% for at least 60 days.  This means that if you are closing in the next 60 days and we can lock you in at 5.75% we should probably go ahead and lock it in.  We will make the Colorado Home Loan rate lock recommendations directly to you when rates hit the 5.75%.  For a faster response stay tuned to my blog at both sites and I will update you immediately when we have a Colorado Home Loan LOCK recommendation in force.  In the mean time God Bless and have a safe weekend:-)

Colorado home loan rates slipped again this afternoon as federal regulators continue to send strong signals on liquidity reform.  Today’s housing committee had several open and public opinions about the severity of the housing market and what will be done in the near future.  One thing for sure, we are in uncharted waters.  Today’s hearings focused on a bill that would deliver $400 Billion dollars in bailout funds to consumers who are facing foreclosure or financial hardships due to poorly designed Colorado home loan programs.  Normally news like this would actually allow Colorado home loan rates to drop, but that did not happen.  Instead the market reacted more heavily on what was said outside the meeting walls versus what was said in the meeting.  Several political figures have expressed strong opinions on what has caused the issues in the financial mortgage lending markets.  Sen. Bunning indicating on MSN that the last two Federal Reserve Chairman’s dropped the ball.  He indicated that over the last 12 years the Fed’s stood ideally by as the crisis built.  I agree that in hind sight, stonger oversight would have been a better deterrent for what is going on in the market today, however it is easier to recognize that today after the fact then when it was going on.  Remember that at the time our economy had experience some of the greatest economical booms this century has ever seen in the financial markets.  Its would have been political suicide to convince their consituants that reform was needed to limit growth.  They would have been voted right out of office and guess what, Sen. Bunning having been in the Senate during these times, played along side everyone else.  Colorado home loan rates continue to fluctuate up and down in a market uncertain of what is to come.  Investors are holding out hope that our economy will start its recovery soon, but have started to implement a wait and see approach.  Bond volume is down and when volume is down, and supply is up, Colorado home loan rates react negatively.  Regardless of the economic data coming in, if we don’t have investors buying we become victims to the supply side movement of rates.  Economic data coming out lately should have created pressures to buy Mortgage Backed Securities not sell them.  Rates should be coming down.  The same forces presented themselves into the market back in 2003 with a much different result.  We saw rates hit a historic low and for the first time we saw fixed rates hit 5.0%.  .  The spread between the 10 year treasury bond and 30 year 5.5% coupon bond is such that rates should be lower then what is being offered by Colorado home loan lenders.  So the question is do we lock or do we float?  Well if you locked last Friday as recommended then you are doing much better then those faced with locking today.  However its hard to say how long this lack of investor confidence will last and how much higher rates will go before seeing some relief.  I believe that until we see economic data indicating a clear sign on the state of the economy, investors will continue to take a cautious approach to the market.  This will keep volume trading to a minimum.  Until volume picks up it really doesn’t make a difference on what is reported, we will continue to have a supply issues, causing Colorado Home Loan rates to go up.  Have a great evening and good luck:-)  Read more at www.coloradomortgagebanking.com/news

Colorado home loan rates have had some negative news come out today causing interest rate to increases for much of today.  UBS or Union Bank of Switzerland announced that they would be issuing investment opportunities in order to raise capital.  This Financial institution has seen some tough times over the last couple of quarters and in order to relaunch their current market position have had to  asked the market to provide them with capital.  Colorado Home Loan rates will take a hit as investors pull money out of the Mortgage Backed Securities market in order to capitalize on these new investment opportunities.  Even though UBS reported a 19 billion dollar write-down on their financial reports, investors still believe that UBS is a credible investment risk.  By offering higher returns with their capital investment opportunities, investors are likely to take the bait and buy.  This should return some good numbers in the stock market.  Like every other big news item investors do have one flaw and that is a tendency to over react.  Investors are looking for what ever edge they can get to make their portfolios perform better, but realization should set in again towards the end of the week.   I expect that the markets will continue to react to this news tomorrow, but like last week, the second any bad economic news hits the market, investors will begin a quick retreat into the bond markets.  by getting investors back into bonds, Colorado home loan rates will begin to fall.  The question here is when will the economic news prove to be to much for investors to continue this stock buying frenzy.  We may have to wait until Friday when the unemployment figures are released in order to get the movement back, but eventually it will happen.  The real money maker question today is simple, How far will rates go up before investors come to their senses and begin to pull their money back into safer investment vehicles?  Only time will tell, but I believe it will happen by the end of this week.  Floating is tough to recommend when rates go up but for now if you LOCK you will find yourself buying into the over reaction currently taking place in the market.  We will keep a close eye on the reports.   If any of the new economic data begins to show signs that the economy is in a state of recovery then we will issue a Strong LOCK recommendation.  Now lets just think about what was said and ask yourself are we really showing any signs of recovery?  If you answer no then waiting to lock should pay off.

Colorado home loan rates will get a boost driving interest rates slightly lower today.  The Durabale Goods report was released and the economic data in that report came in far below what was expected.  I have said this time after time that bad economic data translates to interest rate reductions for Colorado home loan products.  The fact that we had any good economic news at all earlier in the week caused myself and other lenders to take a very cautious approach to what Colorado home loan rates will do.  I still believe that anything below 6% is a good rate but at this time I don’t see anything today that would lead me to believe rates will go up.  The much anticipated GDP report will be due out soon and if it is anything like today’s Durable goods report expect Colorado home loan rates to improve all the way into next week:-)  When you get a chance today take a look at www.coloradomortgagebanking.com/news for additional mortgage information.  I will go out on a limb and say that we are currently in a recession.  Over the last 6 weeks or so the only encouraging economic data that came in was the new home sales report which was a fluke in my eyes.  Everything else we are seeing indicates that the economy has yet to recover and until we hit rock bottom (recession) we will continue to see bad economic data.  This will be good for Colorado home loan rates.  Stay tuned for more details throughout the end of this week.