Colorado Home Mortgage Loan

The Federal Open Market Committee released their March meeting minutes to the public today.  Colorado Home Mortgage Loan rates tend to move up or down depending on how investors view the information being released.  The biggest issues for investors buying Mortgage Backed Securities is the FOMC outlook on inflation.  Inflation will always devalue a  long term investment like MBS which in return will cause Colorado home mortgage loan rates to jump up.  Today’s report however did not have the substance to move the market in any particular direction.  Normally when the minute reports are as vague as they are today, investors will become cautious causing rates to come down a bit.  Today we did not experience this and it was actually the lack of activity that brought the price of the bonds down this morning.  The reason that activity drives pricing on bonds up and down can be explained in simple economic terms.  Supply and demand.  Low activity signals low demand, and when you have a number of suppliers all trying to sell their bonds, a price reduction is needed to attract more demand.  When the price of bonds drop Colorado home mortgage loan rates will rise.  The lack of activity can only be explained right now by the degree of uncertainty investors are showing in their investment strategies.  When there is uncertainty it would be unwise to move  your investments back and forth on a daily basis.  Moving in and out of the market will never give the investor the longterm results their investors seek from a portfolio.   The wait and see approach typically takes over.  As soon as more data comes in that signals tough times ahead, the sooner we will see rates drop again.  Friday’s seem to be a good day for rates, though historically Friday’s rates have been higher.  I would expect rates to drop a bit in the next day or two and we will anticipate that the remaining weeks data will not paint a pretty picture on the economy.  A FLOATING recommendation has been issued but  remember to Target a rate and if your Colorado home mortgage loan rate expectation are met then LOCK.  Best of Luck and God Bless.