Colorado Home Mortgage Loan

So far the mortgage backed securities market has responded well to the Economic Reports released today.  At 1pm Eastern Time we do expect to see some volatility in the Colorado Home Equity loan market as reports come in confirming the progress of the 10 year treasury bond auction currently taking place.  Colorado Home Equity loan programs are primarily impacted by the Federal Reserve and the current Prime Rate.  What I will be referring to today will be the fixed rate programs that move in direct relation to Colorado Home Mortgage Loan rates. 

We had the release of two Economic reports today, Productivity data and Pending new home sales data.  Both reports are viewed to be low priority in the movement of Colorado Home Equity Loan rates, but both certainly have impacts.  If you are looking for a more detailed explanation of these reports look at the last post which should answer most of your questions.  Anyways Productivity did come in higher then expected, but following close behind was economic data indicated lower then expected inflationary numbers.  These numbers are significant because of the influence Oil has had in each inflationary report released so far.  Inflation has been perceived to be a lot more heated then what is actually showing up in the numbers.  This is also important because Oil is trading at extremely high prices.  The fact that inflation appears to be lower then expected, tells us that spending is down.  This may prove to be beneficial to Colorado Home Equity Loan rates in the future, but right now investors continue to be skeptical.  We also had information being reported on Pending Home sales, which reported a negative growth number.  The negative numbers did however come in line with current expectation, sending Colorado Home Equity Loan rates into another holding pattern.  The last thing today to impacting Colorado Home Equity Loan rates today will be reports showing the 10 year treasury auction activity for the day.   These numbers have not been released yet but looking at the live feed for Mortgage Backed Securities it appears that the numbers will be favorable.  This favorability will be good for Colorado Home Equity Loan rates.  Remember we are looking for a LOCK recommendation around 5.75% with no points, we hope to have that in place soon.  Stay tuned for more Colorado Home Equity Loan information as economic reports continue to be released.

Tomorrow we do have two more economic reports to talk about, and both these reports will have impacts on Colorado Home Equity Loan rates.  The Bank of England will be making its bi-quarterly announcement tomorrow on current lending rates for the European markets.  Obviously the majority of investors we have in our Mortgage Backed Securities market come from international investors.  These investors influence Colorado Home Equity Loan rates more then any other buying group currently participating in the bond market.  When The Bank of England announces increases in interest rates, their in house investments become more attractive.  The international investors will pull money out of our market and begin to dump it back into their own markets.  This said, we do not expect any surprising news from the Bank of England, but you never know.  Finally, we will have the Jobless Claims report announced around 830am eastern time.  This report is important because it signals increased demand on wages. The four-week moving average and continuing claims are watched more closely for changes. The labor market is considered to be improving when the four-week moving average goes below 400,000. If unemployment goes low enough it can put wage pressure on the economy and can cause increases in Colorado Home Equity Loan rates.  We will update you as soon as the reports are out. 

In short, we had light reporting day and Colorado Home Equity Loan rate appear to be right where we left them yesterday.  The market has shown signs of improvement all day and at last glance continues to see improvements, which is good news for Colorado Home Equity Loan rates.  Though we saw improvements, rates still appear to be at 5.875%.  We are seeing movements in the market that may have Colorado Home Equity Loan rates hit 5.75% sooner the later.  The issue we are seeing is that investors are still pricing their bonds very conservatively, but we may be able to get the 5.75% at no cost in the next day or two if the trend continues.  We are staying on top of any breaking Headline news mainly because of the impact that would have this week on the Mortgage Backed Securities market.  With economic reports at a minimum it does not take much to have Colorado Home Equity Loan rates moving in the wrong direction.  I have additional information available at www.coloradomortgagebanking.com.  Give me a call with any of your Colorado Home Equity loan questions.

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

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.