Colorado Home Mortgage Loan

Colorado Online Mortgage rates experienced a lot of activity in the last couple of days.  We have a variety of economic reports to talk, but in short most of the data released came in positive for Colorado Online Mortgage rates.  The movement seen in the Mortgage Backed Securities markets however has not been enough to send Colorado Online Mortgage rates to far down.  We have seen about a 1/8^th decrease in Colorado Online Mortgage rates and we are hoping that going into next week we see Colorado Online Mortgage rates continue to drop.  Listed below are the Economic reports reported in the last couple of days all of which will have some impact on Colorado Online Mortgage rates:

Yesterday 6/26/2008

Corporate Profits continue to be the hot headline topic.  So far Corporate Profits are down and with recent troubles being reported by GM and Ford its hard to believe that Corporate Profits will come back this year.  The negative press related to Corporate Profits will increase the likelihood that investors will buy Mortgage Backed Securities.  This demand should decrease pressure on interest rates and should move Colorado Online Mortgage rates down.  

Jobless Claims continue to jump over expectations sending another weakening influence in our economy.  Jobless claims are monitored as a signal of strength in our economic system.  We are trending above 3.1 Million Claims which is at a new high for this decade.  Investors again tend to lean towards MBS in order to ride out the poor economic storm.  Colorado Online Mortgage rates tend to do better when this report comes in worse then expected.

Existing Home Sales did come in a bit better then expected.  We were anticipating 4.96 Million homes sold and in fact we had 4.99 Million.  This report would have normally had negative impacts on Colorado Online Mortgage rates, but the difference was not enough to send any real shock waves to investors.  As a Colorado Online Mortgage Provider I will attribute the higher then expected numbers to an increased activity seen in the summer months.  We also have many new home owners recognizing the potential to buy now and this would increase home sale activity.  The report though negative did not move Colorado Online Mortgage rates in one direction or the other.

Gross Domestic Product Came in as expected showing about a 1% increase.  GDP is the biggest monitor for recessionary pressures.  Negative GDP numbers are defined as Recessionary periods.  Two GDP reports in a row showing negative output indicates that we are in a recession.  Colorado Online Mortgage rates did not react to the information.  Most of the expectations in GDP have already been priced into the Colorado Online Mortgage markets and would have only impacted them if the news came in different then what was expected. 

06/27/2008  Economic Data

The Personal Consumption Expenditures (PCE) report is a component of the monthly Personal Income report. It is a measure of price changes in consumer goods and services. The PCE is the Fed’s favorite inflation indicator and markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the markets adjust Colorado Online Mortgage interest rates to reflect those changes.   The fact that the actual Core PCE come in lower then expected indicated that inflationary pressures were weaker then anticipated by the market.  This will create buying demand in the market and will help lower Colorado Online Mortgage rates.

Consumer Sentiment, like Consumer Confidence measure how people feel our economic situation is.  A strong report typically indicates stronger then expected expenditures by consumers.  A weak report indicates consumer’s propensity to save.  When people are not spending, economic stimulus does not take place.  Poor economic stimulus activities will increases the demand for bonds and as a result lower the price for Colorado Online Mortgage rates.  Our current Consumer Sentiment reading is at its lowest level in 20 years and appears to be motivating people to save.  This will help Colorado Online Mortgage rates over time.

In conclusion, most of the economic data seems to positive for Colorado Online Mortgage rates.  We are hoping to see Colorado Online Mortgage rates continue their downward momentum.  We will need to stay tuned to all the economic data influencing our markets over the next week or so.  We should drop a bit over the next few days. 

Please call me with your Colorado Online Mortgage questions.