Colorado Home Mortgage Loan

Colorado Mortgage rates continued it’s up hill climb today.  So far Mortgage Backed Securities are reporting about .25% increases in Colorado Mortgage rates.  The news over the last few days has not been favorable to Mortgage Backed Securities. There are a number of reasons why this may be taking place, but it certainly reminds me of exactly how difficult it can be to project exactly where Colorado Mortgage rates are going.  In last 3 weeks we have seen Colorado Mortgage rates increase and increase and it just does not appear that we have any relief in sight.  All the Economic data coming in during the last 3 weeks should have been favorable to Colorado Mortgage rates; however that has not been the case.  1Q profit reports seem to be the driving force over the last 3 weeks leaving economic data for the back page of your local newspaper.  So the question today will be how much longer will Colorado Mortgage rates go up? And what will the rate be at its high point?  Most of my clients have been quoted between 5.75% and 6.0% with the condition that we would monitor a lock request at 5.5%.  Colorado Mortgage rates don’t appear to be heading in that direction in the next 45 days.  I still believe that we are at a high point assuming that we have no major surprises in the stock market (Like Ambac see www.coloradomortgagebanking.com/news). We have some slow days ahead as it relates to economic data, and most of the companies have reported their profits for 1Q, so we should see the momentum return to a more predictable approach.  We have 3 big reports coming out on April 30^th all of which will impact the market.  The biggest report of the three will be GDP which so far has reported positive production numbers.  If this report comes in lower then expected we will see rates improve.  Consumer sentiment and Consumer Confidence comes out tomorrow, both of which should come in low.  So assuming the stock market news keeps itself out of the headlines, rates should improve and FLOATING remains my recommendation.  It is a bit scary to see where we are at compared to 6 weeks ago, but I have said this many many times, we are not out of the woods yet! We will see bad economic data continue to make the headlines and when this happens Colorado Mortgage Rates will get better.  With that said, I am changing the Lock Floor Recommendation from 5.5% to 5.75% still a good rate, but hitting that 5.5% in the next 30 days will be out right difficult.  Call me with any of your Colorado Mortgage questions. 

Daniel

Mortgage Backed Securities are showing some loss right now.  It has been an up and down day for Colorado Mortgage rates and so far we are looking less favorable then what was being reported an hour ago.  If the trend continues we may actually see pricing get a little worse today.  The Consumer Price index came in today right in line with expectations.  This in it self should have brought rates back in line, and we should instead, be experiencing some Colorado Mortgage Rate improvements.  The only rhyme or reason I can see causing change in the Mortgage Backed Securities, has to do with the Bullish approach investors are currently using in the stock market.  Some Corporate Profits are coming in as expected and investors are seeing that as a good sign.  What they forget is that though the profits are coming in as expect they are still coming in as CRAP:-)  Investors are like lemmings and I have said this many times.  One set of investors take a strong buy approach and the rest follow close behind, all of them thinking that someone knows something the other does not.  As soon as they realize that they are all dumb as posts, a rebound should be felt back in the securities market.  Colorado Mortgage rates should be seeing improvements right now, but so far that is not the case.  I believe that the improvements should be felt by the end of the week.  We continue to have economic reports through out the week and the second any of these reports remind us of where we are at as an economy, Colorado Mortgage rates should move back down.  FLOATING remains the recommendation in place.  We will keep a close eye on the Jobless claims report due out tomorrow.  This report by itself can bring things back into prospective.  Check out www.coloradomortgagebanking.com/news when you have a chance.

Daniel