Colorado Home Mortgage Loan

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.