Colorado Home Mortgage Loan

Colorado Online Mortgage rates see no movement in the market today.  In the absence of any real economic data, investors found themselves searching the headlines for information.  The stock market lost 220 points today as a result of instability and fear revolving around future prices in oil.  Futures trade a lot higher out of Fear that the middle east could have future supply issues, based on a growing concern about Israel’s military intentions towards Iran.  Investors in general are taking a wait and see approach and volume in the MBS market was low.  Colorado Online Mortgage pricing did improve a bit, but not enough to make any real changes to our current Colorado Online Mortgage rates. 

Today the stock market saw a variety of blue chip companies reporting poor profit expectations.  Ford and GMC both have indicated considerable profit losses due to the decreased demand for low gas efficient vehicles.  Ford also announced that it would delay its release of the new Ford F-150 until projected demand warranted the release.  Colorado Online Mortgage rates should have seen bigger improvements with the release of this information, but investors were not quick to react.  I believe that investors are still concerned about the inflationary pressures reported on late last week which may be steering there current buying habits.  I would not be to concern about the lack of movement today; this is expected when investors are left without any real economic data to base their decisions on.  I expect Colorado Online Mortgage rates to react with a little more predictability early next week, when Consumer Sentiment releases their primary data on Tuesday.  We will also see some movement again on Wednesday when Durable Goods Index report its numbers.  Both these reports are expected to come in low and if these reports meet expectations, we will see Colorado Online Mortgage rates improve.  Our recommendation continues to be a FLOAT recommendation and we are hoping that the information released next week creates the momentum we need to see our Fixed Colorado Online Mortgage rate programs back down to 6.0%.  Right now we will need about two weeks of improved rate movement before we can have 6.0% offered to you. 

We have some troubling issues to face in the market especially in the financial sectors of our economy.  Today I saw a new report indicating that our current credit debt has exceeded our mortgage debt in this country.  Never before have we had Credit debt exceed mortgage debt and the results of this may not be felt for some time.  Like the mortgage industry, if it is not carefully monitored, could have even greater repercussions then what we are seeing with mortgage debt today.  Only time will tell us if we are making the right decisions by offering the amount of credit currently circulating in our economy.  Keep in mind the reason Mortgage debt is such a major issue is because just about anyone could qualify at one time.  Well it appears that anyone with a pulse today can now get credit card approval.  What has me concern with this is given the choice of what not to pay during tough financial times, normally the consumer chooses to stop paying on credit before paying on their home. 

Both my posts today came late and I apologize for that.  I also noticed that they appear to be quite negative and it should be noted that I do feel we have hope in the near future.  Our Economic system is better then any other economic system in the world and because we allow the markets to dictate market corrections we will see improvements eventually.  I will be available to you all weekend if you have questions.  Call me with your next Colorado Online Mortgage request and see how well I try to service you needs.  God Bless and Good NightJ

Daniel

Colorado Online Mortgage rates improved today as investors began to realize that the mortgage backed securities market was a little undervalued.  Investors went on a selling frenzy yesterday on fears that inflation could be higher then what was currently being reported.  Obviously inflation is bad for Colorado Online Mortgage rates.  I tend to reserve this site to talk about the various economic reports impacting Colorado Online Mortgage rates.  I also try to explain how the data was interpreted by the market and what that means to future Mortgage Backed Securities Pricing.  The price of bonds has an inverse relationship to Colorado Online Mortgage rates.  When bonds are up Colorado Online Mortgage rates are down. 

Most movements created in the market revolve around volume activity in the market.  Volume in the market is dictated by Economic activity, which is reported by economic data and/or current headlines.  In the absence of economic data, current headlines take the center stage for what investors look at to help them determine their buying and selling strategies in the market.  When buying volume is up Colorado Online Mortgage rates will decline.  If selling volume is up Colorado Online Mortgage rates will climb.  Our only economic data report for today came in the form of Existing home sales.  The Existing Home Sales Index reports the number of existing homes sold, expressed on an annual basis. The sales of existing homes accounts for 84% of all houses sold and the total volume indicates housing demand. The report is a strong predictor of future national mortgage origination volume and for near term spending for housing-related items. The Existing Home Sales expectation for today was around 4.85 million and the actual data came in around 4.89 million.  This data appeared to be better then expected and typically causes Colorado Online Mortgage rates to jump a bit.  However the data is still so poor that investors could not help but be concerned about the volume in Home sales.  This concerned outweighed the better then expected numbers and caused investors to seek safer investments.  When investors seek safe investments bonds become a nice portfolio to have. We also had inventory numbers released for homes currently on the market.  This report showed that we had more homes on the market then ever before.  Our inventory levels came in at a new 22 year high and not since 1985 have home inventories been so bad. 

Colorado Online Mortgage rates will be impacted by a verity of economic reports due out.  Durable orders; consumer confidence; and new home sales will all be market movers next week.  The biggest report for the week will come in Durable Orders which reports on Wednesday.  Durable Goods Orders reports the number of new orders placed with domestic manufacturers for immediate and future delivery. Durable goods are items considered to be useful for at least three years (such as vehicles, large appliances and computers.) It is important for Colorado Online Mortgage rates because durable goods provides insight into demand as well as business investment. Companies willing to spend more on equipment and other capital are possibly experiencing sustainable growth and could be planning on greater production capacity. The Durable Goods Orders report is a leading indicator for the manufacturing sector and has a big effect on the Colorado Online Mortgage markets despite its volatility and large revisions. The non-defense category closely reflects the GDP category, Producer Durable Equipment, and is looked at more closely than the overall headline number.

We believe that we will continue to see light reporting through Tuesday of next week and therefore should see Colorado Online Mortgage rates continue to regain this weeks lost ground.  Colorado Online Mortgage rates will be focused on Headlines until then and because most of the 1Q reporting has already found its way into the market no surprises appear to be on the horizon.  If you can get 5.75% the LOCK otherwise continue to FLOAT until early next week.  Call me with your Colorado Online Mortgage questions and take a look at www.coloradomortgagebanking.com/news.

Colorado Online Mortgage rates hit a point today where Locking made sense.  We had two Economic reports coming out today that made movements in the market.  Colorado Online Mortgage rates dropped as a result and 5.75% became available without any cost to the borrower.  The benefits that the decreased Colorado Online Mortgage rates had on the market were short lived and by the end much of what we gained early on where lost to profit seekers.  Profit seekers are investors who sell and trade bonds in a short term cycle.  Often they will enter the Mortgage Backed Securities market buying bonds slowly as the price drops, and will sell immediately the second the price point hits into profitable ranges.  Depending on how many profit seekers we have can create and artificial high and low point in the market.  I believe we saw a little bit of this late today.  The Mortgage Backed Securities market found the price of bonds dropping due to the overwhelming supply being offered into the market.  This caused much of the gains created from the poor performing economic data to go away by close of business today.  We will continue to push a lock recommendation while rates maintain the 5.75% range, make sure there are no additional costs to getting this rate. 

The market movers today came from two reports, Housing starts and Consumer Sentiment.  Housing starts came in higher then experts predicted, which would normally be bad for Colorado Online Mortgage rates.  The higher then expected numbers normally indicate that housing and mortgage volume will be high, which in return means that our economy is moving along as expected.  Lower numbers indicate less spending and in return put investors in a conservative buying mode.  The housing numbers were high, but the numbers were inflated a bit by multi-family units.  It appears that the actual Single Family Housing numbers fell, while Multi-Family permits increased.  The increase in the Multi-Family permits out weighted the Single Family Housing decreases, which caused the data to report better then expected growth in this section.  Colorado Online Mortgage rates should have reacted negatively, but the fact that Single Family Housing numbers decreased again did not sit well with aggressive investors.  We should also note that we are at 50% of what housing numbers were reporting back in 2005.  We have a long way to go in this data, before we can say the data was positive.

Consumer Sentiment also came in and this number came in at a 28 year low.  Consumer Sentiment  is used to gain insight into possible future consumer spending. It is almost identical to consumer confidence but it has two readings per month, preliminary and final readings. The consumer expectations portion is used for the leading economic indicators index.  This index is due out on Monday.  The numbers were so poor that it raises real concerns about what the people in the economy really think, and what their buying habits will be in the months to come.  If buying is low then returns are low.  When investors see low returns they tend to want to spend money on safer investments.  This created some real volatility in the Mortgage Backed Securities market this morning and caused Colorado Online Mortgage to drop.  When the drop took place our office went to work locking in loans not currently locked.  At this point we are pleased to say that all loans currently submitted are locked at rates at or below 5.75%.   If you have a loan somewhere else I would make the call to see if it is locked and if not go ahead and lock it.   If you have some time Check out www.coloradomortgagebanking.com/news for some of the basic Float/Lock recommendations.  Best of Luck and God Bless.

Daniel