Colorado Home Mortgage Loan

Colorado Home Loan Rates should have seen another day of Colorado Home Loan rate improvements, but so far it appears that the market is unaffected.  NY Empire State Index surveys a group of manufacturers across New York in a variety of industries.  The participants of this survey normally involve company Presidents or CEO.  About 250 surveys are released and about 100 are returned.  The survey itself asks 10 or so questions as it relates to the Manufacturing sector.  These questions are designed to signal economic movements and inflationary pressures.  Colorado Home Loan rates are impacted by survey results, because investors use that in determining future MBS pricings.  Obviously when MBS pricing increases Colorado Home Loan rates decrease.  A negative report typically causes Colorado Home Loan rates to drop.  Today’s report came in at a -8.7 and the consensus by leading experts was that the report would come in around -2.4.  Last month the NY Empire State Index came in at a -3.2, and it was expected that some improvement would be seen over May numbers.  The fact of the matter is that the report came in considerably lower then expected and it may have been what we needed to stop the up hill climb seen with Colorado Home Loan rates over the last week or so. 

Colorado Home Loan Rates were also impacted slightly by NAHB Sentiment index.  This index rates how the National Association of Home Builders perceives the current state of the business.  Obviously depending on how they think the economy and the home sale market are going, will dictate the amount of supply they generate.  Colorado Home Loan rates are impacted by Home Sale Supplies but not directly.  This impact comes in a round about way, but Colorado Home Loan rates are impacted.  When you have an abundant supply for Home Sales the price of homes tend to go down.   Lower Home prices mixed with high Colorado Home Loan balances make it much more difficult to sell.  When home owners are unable to sell, Foreclosure rates increase, which increases the number of Mortgage Defaults.  Mortgage Defaults increases the risk associated with MBS creating a risk premium which is returned to the investors in the form of higher interest rates.  This is how Colorado Home Loan rates are impacted by high home inventories.  NAHB Sentiment index registered a reading of 18 one point lower then last month.  Anything showing a reading below 50 signals negative feelings toward the current state of business.  When the NAHB Sentiment is low, normally new home building numbers are low which is good for Colorado Home Loan rates. 

In short Economic reports released today should have been positive for Colorado Home Loan rates.  Though we saw no immediate decreases in Colorado Home Loan rates, we also did not see any increases.  Right now we continue to face real inflationary fears, luckily these fears have not be substantiated by any real economic reporting.  This does not mean I don’t believe we have inflationary pressure, it just means that the pressure may not be as great as people think.  Colorado Home Loan rates tend to react heavily on inflationary information and last week we experience some heavy movements.  I am hoping that tomorrows PPI (Producer Price Index) comes in lower then expected, if this happens we may begin to finally see Colorado Home Loan rates move down.  The only thing I have indicating that the numbers may come in lower, stems from the NY Empire State index which stated prices paid to distributors remained unchanged, according to the survey.  We will see if the survey got it right. 

The consensus on where PPI will come in at does appear to be high enough for me to believe that we are in a FLOAT situation for your Colorado Home Loan product. Colorado Home Loan rates remained unchanged today, and if PPI reports at or below expectation tomorrow we should begin to see Colorado Home Loan rates improve.  We also have our Industrial Production numbers due out and it appears at least for now that we may see this report come in reporting negative numbers.  A negative number on this report with a better then expected number for PPI will be the proof needed to decrease current inflationary fears.   Look for Colorado Home Loan rates to improve this week. I will give it a 70% favorable probability on this weeks rate sheets.  Let tomorrow be the judge on whether I get this one right or wrong.  Good Luck and let me know how I can help you with your Colorado Home Loan questions.

Daniel   

Colorado Home Loan rates take another hard hit today as economic data signals appear to be heading in the right direction.  There were 4 major economic and headline pieces creating Colorado Home Loan rate movements in the Securities market.  Jobless claims, Import and Export Price index, Retail Sales, and finally key notes from Charles Plosser became the information of interest for Investors.  Colorado Home Loan rates did not do to well on the information released from these sources.  Listed below are the reports and their impacts.

Retail Sales were forecasted at a .5% growth.  The actual Growth from May was 1%, double the initial consensus.  Many experts believe that this created a major sell off in the Mortgage Backed Securities market and was today’s single biggest Colorado Home Loan rate mover.  Personally I believe that we should not have been surprised by the greater then expected numbers.  We are a society that likes to spend money, and with all the recent Tax return credits coming into the picture how could we not prepare for the increase in buying power.  Colorado Home Loan rates jumped up, but I don’t believe that Retail Sales was the primary reason for that.  The Retail Sales Index measures the total receipts of retail and food sales. Retail sales include durable and non-durable merchandise sold and services and taxes incidental to the sale of merchandise. Retail Sales is the timeliest indicator of broad consumer spending and is adjusted for seasonal variations and holidays. Strength in Retail Sales implies a strong economy and is usually negative for bond markets.  This negative push in the bond markets creates Price pressures which cause Colorado Home Loan rates to go up.

Colorado Home Loan rates did have some inflationary data tied to it today.  We had two things in the last 24 hours create negative attention on inflationary pressure.  The direct result is why I think Colorado Home Loan rates increased the way they did.  The first report was import and export price index.  Import and export price indexes are compiled for the prices of goods that are bought in the United States but produced abroad. These prices indicate inflationary trends in internationally traded products.  Changes in import and export prices are a valuable gauge of inflation.  A better way to look at this is that this is a way for us to import inflation domestically.  If we are bringing in inflationary goods inflation increases here at home.  Colorado Home Loan rates hate anything to do with inflation whether it is here or abroad.  Chares Plosser spoke recently setting the stage yet again about the Federal Reserves concern for inflation.  He stated that this was his and the Federal Reserves biggest concern and that they would combat that at all costs.  He also noted that a fine line has to be set between fighting inflation and helping the economy grow.  These two indicators work inversely to each other and must be managed.  Colorado Home Loan rates obviously took another hard hit on inflationary talk and with so many members of the Federal Reserve bringing it up a real inflation problem is projected.  Luckily we have things in place and have learned our lessons from the 1970’s to ensure the obstacles that were present there do not repeat themselves today.  We certainly have all the components in line which can trigger Colorado Home Loan rates to go up like the 70’s but the Federal Reserve is committed and will sacrifice economic growth to avoid inflation problems.

On a lighter note for Colorado Home Loan rates, Jobless Claims came in higher then expected which should have helped Colorado Home Loan rates a bit.  Honestly all it did was slow down the up hill climb in Colorado Home Loan rates already being felt in the market.  Jobless claims came in at 384K much higher then the 370K consensus expectations.  Tomorrow will be a big day for Colorado Home Loan rates and should be monitored closely.  If the CPI report comes in at or below expectation, Colorado Home Loan rates will improve or at least stop its current up hill trends.  If CPI (Consumer Price Index) Comes in higher then expected watch out we may see Colorado Home Loan rates jump up in the high 6% range before the end of the week.  We will also need to keep a close eye on PPI next week this is the second price index report and will give us the final look at last months inflationary pressure.  Luckily it appears that the consensus has prepared us by having the expectation set higher then last month so it does not appear that they are too far out on what it should come in at.  Colorado Home Loan rates will be difficult to predict until both reports are released.  If both reports come in lower then expected we may see some nice gains by the end of next week.  LOCK if you can get 6.0% otherwise you may as well ride the wave for a week or so, Colorado Home Loan rates are destine to get some of the losses back, if anything the lenders have way too much safety premium currently built in.  This means that as soon as things come down Colorado Home Loan rates will improve as investors lift their current conservative thresholds between the Mortgage Backed Securities market and the Whole Sale Lending markets.  Please call me with your Colorado Home Loan questions.

Daniel

Colorado Home Loan rates hit a new summer high.  Most Colorado Home Loan providers are quoting around 6.25% or 6.5% for a conventional 30 year fixed Colorado Home Loan rate product.  We will continue to honor 6.0% and will not charge any points.  The hit for the new rate will be absorbed by us.  Colorado Home Loan rates took on some extra baggage when today’s Jobless Claims report came in better then expected.  Keep in mind that when Economic data shows signs that our economy is on a path to recovery, Colorado Home Loan rates will take a hit.  The reason for that is that investors will pull money out of the Mortgage Backed Securities market and will in return leave it in the equities market. 

Jobless Claims came in at 357K and the expectations were set at 370K.  Colorado Home Loan rates reacted negatively to the data.  Initial jobless claims measure the number of first time filings for state jobless benefits. Claims are quite volatile from week to week; therefore many analysts track a four-week moving average to get a better sense of the underlying trend. The report also contains two other statistics- the number of people receiving state benefits and the insured unemployment rate.
This report impacts Colorado Home Loan rates because if unemployment goes low enough it can put the demand for higher wages in the market.  The higher wage demand puts pressure on the economy and can cause increases in Colorado Home Loan interest rates.  The Bank of England, which has similar responsibilities to the Federal Reserve did not move interest rates up or down which was expected by the market.  The combination of the two reports normally would not have drastic impacts on the Colorado Home Loan market, but tied to comments made by the Federal Reserve yesterday, made a bigger impact on Colorado Home Loan rates then it normally would have.

Inflation continues to be the #1 influencer on where Colorado Home Loan rates are expected to go.  Higher inflation will devalue long term investments.  The lower price pressure requires a higher Colorado Home Loan rate to attract other investors.  We have implemented a FLOAT recommendation which you can read in detail at www.coloradomortgagebanking.com.  In the mean time we will need to prepare ourselves for the Nonfarm Payrolls and the unemployment rates which will create some movements in the Colorado Home Loan rate market.  Industry experts have been extremely low in their estimations as it relates to forecasting these economic data reports.  If the trend continues and the consensus on where the data will come in is still low, Colorado Home Loan rates will go up again.  6.0% is sounding more and more like the rate of choice and if it is offered to you would not be a bad Colorado Home Loan rate to lock in.  We have jumped a bit in the last 3 weeks and if you believe Colorado Home Loan rates may improve then wait until you feel like locking your Colorado Home Loan.  I only recommend the FLOAT option today, because much of the data released today have already had the impacts hit the market.  Colorado Home Loan rates started the day off worse and it appears that as the day progresses that much of the loss from today’s economic reports will be regained in the Colorado Home Loan rate market. 

As I stated before tomorrows two economic reports will create movement in the Colorado Home Loan market who much movement will be realized when the reports are released.  Nonfarm Payroll data is the top number of the Employment Report, one of the most highly anticipated pieces of economic data. The headline figure is often a major Colorado Home Loan market mover with the labor market a strong predictor of the strength of the economy. The Unemployment Rate is obtained from a different data sample, and together the two reports provide the most comprehensive picture of the labor market. The monthly reports are, however, very volatile and subject to large revisions in future releases. Long term trends in the report’s data are a better gauge for the true state of the labor market. Strength in the labor market implies a strong economy and is usually negative for Colorado Home Loan markets.  Unemployment will also be released with this report and is the second component in what investors look at in the reported employment numbers.  Colorado Home Loan rates will either jump or of go down after the release of these figures.

It is very hard to determine where we need to lock your Colorado Home Loan in the next 24 hours, but it appears that for the moment the Mortgage Backed Securities market is trying to make up for some of the ground lost earlier this morning.  I would FLOAT your Colorado Home Loan rate until late this afternoon and would lock then if you want to take the risk out of the market.  For those willing to ride it out, it appears that we have a lot of ground that we could make up that could be regained if the employment numbers come in worse then expected. 

Remember to call me with your Colorado Home Loan questions.  My Colorado Home Loan Rate Lock Recommendation remains at 6.0% we will see what Friday brings us until then.

Best of Luck

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:-)

To get up to date Colorado home mortgage loan inforrmation please visit my other site www.coloradomortgagebanking.com as well.  Colorado home mortgage loan rates have seen a slight increase over the last few days.  The primary reason Colorado home mortgage loan rates have increased stems from a variety of Economic news being reported by the press.  The lack of actual Economic Data late last week and early this week has created a void of information that investors so desperately need in order to make investment decisions.  Colorado home mortgage loan programs are impacted by the price of mortgage backed securities.  Currently mortgage back securities are trading lower today then last week causing interest rates to increase.  Investors are currently tuning into what the federal reserve will do, and all indications point to a continued interest rate reduction to help stimulate the economy.  Well when the federal reserve lowers interest rates the fear of inflation comes to the surfice sending a message to investors that Colorado home mortgage loan rates will start to increase because of the risk associated with mortgage backed securities.  It is very simple to monitor where rates are going.  Rates are influenced by two primary concerns inflation or economic news, which ever  dominates the headlines will be what influences rates. Rates will go up, if we have recessionary presures and bad economic data causing Colorado home mortgage loan rates to go down.  Right now we are at the top of the 5th inning and inflation has made its way front stage and recently the release of better then expected new home sale numbers indicate that rates are moving up.  We may see a bigger increase in Colorado home mortgage loan rates by the end of this week and the beginning of next week as economic reports come out.  I will watch this closely and if anything is leaked out prior to the reports coming out we should see it reflected in the Mortgage Backed Securities market.  Take a strong look at where the rates are tomorrow and if it is acceptable and you are being quoted a Colorado home mortgage loan rate you can work with then locking will take the risk out of floating until after the economic data comes it.  Think about it investors over react so rates will probably increase on Wednesday and if Thursday reports (GDP Report) comes in better then expected rates will go up again, If the report comes in below expectation then rates will probably remain the same until Fridays PCE (Personal Consumption Expeditures data) comes out and if that comes in below expectation then rates will get better.  So where do you benefit, well you benefit from a lower rate if the news continues to come in worse then expected.  So again If you like what you are being quoted on your Colorado home mortgage loan today don’t hold out hope for an additional .125% lower interest rate.  Listen to your gut and put some value on peace of mind and locking tomorrow will be the right choice.  I hope I am wrong and will monitor it closely tomorrow.  Read the blog tomorrow to see what  the market is doing.  Current recommendation is to lock due to the likelyhood that Mortgage Backed Securities will continue to drop causing rates to go up.  Give me a call if you have questions, Best of luck and God bless

I have two Colorado Home Mortgage Loan sites that will be updated daily to give you the most up to date market information.  This Market information I hope will be beneficial to you when selecting your Colorado Home Mortgage Loan rates.  We have seen some nice movement in Mortgage Backed Securities.  The price of these bonds have moved up over the last 5 business days and we are looking to see these bonds move even higher tomorrow.  I would start looking hard at locking your Colorao Home mortgage Loan rate in the next day or so.  The big news in the market will be what the Federal Reserves do with short term interest rates.  We are expected to see a 1% decrease and investors have been trading with these expectations in mind.  So what will Colorado Home Mortgage Loan rates do in the next day or so well here are some projections.  Colorado Home Mortgage Loan rates will start to taper off first thing tomorrow morning.  We saw Colorado Home Mortgage Loan rates move way to fast today and investors will begin to sell off to recognize short term profits in the market.  With that said I believe rates will maintain where they are at and if we have any bad economic news hit the market rates will move down yet again.  It is a good time to float your Colorado Home Mortgage Loan rates, but be prepared to pull the trigger.  Rates are almost at an all time low don’t be gready if the rates are at a point you can live with then LOCK.  Heck 4 weeks ago you would have all jumped at the Colorado Home Mortgage Loan rates we are offering you today.  I will call upon most of you to lock in the next day or so, please be ready and lets enjoy where we are at, Most of you have been quoted a higher Colorado Home Mortgage Loan rate then what we will lock you into:-)  Call if you have questions.  See you tomorrow.