Colorado Home Mortgage Loan

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

Mortgage Rates are determined by the Mortgage Backed Securities market.  Most people refer to this market as the bond market.  The bond market competes with the equities market to attract demand from investors.  Colorado Mortgage Rates are determined by the demand shown in the bond market.  The relationship between Mortgage Backed Securities pricing and Colorado Mortgage Rates follow an inverse pattern.  The best way to look at the inverse relationship is to watch the price of bonds, when the price of bonds goes up, Colorado Mortgage Rates will fall. This will also hold true as bond prices drop, Colorado Mortgage Rates will naturally go up.  This trend does not change for any reason, so what we have to look for in order to properly determine Colorado Mortgage Rates, are the factors that increase or decrease demand in the bond market.

Demand in the bond market will normally be determined by investor’s adversity towards risk. Investors are inherently conservative and look for every opportunity to eliminate risk from their portfolios.  Colorado Mortgage Rates also use risk factors when determining its final rate which we will elaborate later.  Right now we will simply focus on the risk associated with investments. Bonds are considered safe and sometimes risk free investments.  Because the risk is low the returns are also low.  Equities (Stocks) on the other hand will have high risk associated with them, but in order to compensate for the risk, stocks will need to offer a much better return. Investors look at both markets and in times of bad economic progression bonds become a safer investment.  In times of good economic progression Stocks become a good investment. Colorado Mortgage Rates will typically come in lower during low economic growth periods and likewise Colorado Mortgage Rates will suffer during good economic growth periods.  So if you simply want to get a feel of where Colorado Mortgage Rates are in relation to historical data look at what is going on in the economy.

What is going on in the economy is heavily monitored by investors when determining how aggressive they will be in buying and selling bonds.  Economic data reports are the primary driver of investor behavior in the markets.  These economic reports come out in a verity of formats. Some that you may be familiar with are: GDP, Consumer Sentiment, Cost Price Index, and Jobless Claims just to name a few.  Colorado Mortgage Rates react immediately on the data released by these economic reports.  The economic standings are dictated by what is said in the data.  If the data says we are in an economic downward spiral investors quickly jump out of the equities market and reinvest in the bond market.  The increased buy demand drives to price of Mortgage Backed Securities up which drives Colorado Mortgage Rates down.  Obviously, Colorado Mortgage Rates have the opposite movement when the economic data released is better then expected.  This is how core Colorado Mortgage Rates are determined. 

The last component impacting Colorado Mortgage Rates are the loans risk parameters.  As I stated before investors demand a higher return when they take on more risk.  Colorado Mortgage Rates are no different in the returns required for the risk taken.  Colorado Mortgage Rates start off at a base risk factor.  Normally clients with a 720 or higher credit score, Full Documentation can be verified for their income, and a minimum of 20% down payment has been made will qualify under the least amount of risk.  These type of loans will certainly carry a low risk premium and will offer the best Colorado Mortgage Rates available.  Once the loan begins to add risk factors like 100% financing or credit scores below 720, Colorado Mortgage Rates begin to go up.  This is the most basic way to explain how Colorado Mortgage Rates are determined, and I would encourage you to contact us directly with any other Colorado Mortgage Rates questions you might have. 

Jobless Claims pretty much came in as expected.  You can get a detailed explanation of what this report is and how it impacts the market by reading yesterday’s article.  The data released today indicated that Jobless Claims were about what was expected.  The Consensus on this was around 370K and the actual number came in at 371K.  This is also good news for Mortgage Backed Securities, which in return drives Colorado Home Mortgage Refinance rates down.

Industrial Production also had worse then expected data released today. Industrial Production currently shows contraction in the economy and it was expected to do so again today.  Experts put the contraction or negative growth factor around .3%.  When the data was finally released the actual negative growth factor came in .7% which is significantly lower then expected and again created more demand for Mortgage Backed Securities.  Colorado Home Mortgage refinance rates saw continued improvement after the release of this report.

We are seeing some volatility in the Mortgage Backed Securities market this morning and Colorado Home Loan rates appear to be holding steady for the moment.  There appears to be a lot of buzz on the Hill related to a variety of FHA sponsored bills which were approved by the house yesterday.  The Frank bill approved yesterday in the house has proposed a $15 Billion dollar bail out on homes currently facing Foreclosure.  The bill would forgive the balances on Colorado Home Loans that exceed the current property prices.  These lenders would then refinance the Colorado Home Loan at a balance closely reflecting actual value.  The difference would be paid out by the government.  Now on the surface it appears to be a good program, especially if your owe more on your home then it is worth.  Colorado Home Loan programs have not faced the same obstacles as other loans in other states.  Florida, Nevada, Michigan, and California just to name a few have seen home prices drop more then 20% in the last year and many people trying to refinance just can’t because of the current property value issues.  Colorado Home Loans based in parts of Denver are facing similar issues.  These Colorado Home Loan programs were designed to be refinanced in two years with the hope that property values would go up.  Instead many consumers are faced with Colorado Home Loan programs that have adjusted to a point where the home can no longer be afforded.  This is a major issue in our foreclosure market today and though I believe the bill has good intentions, ultimately the results will not favor the market.  I continue to support my philosophy that the Government should not intervene in any market activity.  Normally when you have governments trying to push markets in one direction or another, the market tends to react poorly.

Colorado Home Loan programs were underwritten by a variety of Lenders understanding the risk associated with them.  The lenders who approved the loans should be held accountable for the type of Colorado Home Loan programs they approved.  We are in a very tough market which will recover.  We simply need the markets to resolve the issues on their own.  Only when you have the absence of outside influences will the market correct itself.  Colorado Home Loan rates do appear to be holding steady around the 5.75% range we LOCKED in at yesterday, but it appears that we may be heading for some tough days ahead.  We will continue to recommend Locking and at this point you should not be getting quoted anything above 5.875%.  If you have a Colorado Home Loan rate above that please call me and give me a chance to see what I can do for you.  In the mean time have a great weekend and a special happy Mothers Day to my Wife, We just found out yesterday that we are expecting baby #2.  Jaimee I love you.  If you want to read more blog information go to www.coloradomortgagebanking.com select blog #1

Daniel 

So far the mortgage backed securities market has responded well to the Economic Reports released today.  At 1pm Eastern Time we do expect to see some volatility in the Colorado Home Equity loan market as reports come in confirming the progress of the 10 year treasury bond auction currently taking place.  Colorado Home Equity loan programs are primarily impacted by the Federal Reserve and the current Prime Rate.  What I will be referring to today will be the fixed rate programs that move in direct relation to Colorado Home Mortgage Loan rates. 

We had the release of two Economic reports today, Productivity data and Pending new home sales data.  Both reports are viewed to be low priority in the movement of Colorado Home Equity Loan rates, but both certainly have impacts.  If you are looking for a more detailed explanation of these reports look at the last post which should answer most of your questions.  Anyways Productivity did come in higher then expected, but following close behind was economic data indicated lower then expected inflationary numbers.  These numbers are significant because of the influence Oil has had in each inflationary report released so far.  Inflation has been perceived to be a lot more heated then what is actually showing up in the numbers.  This is also important because Oil is trading at extremely high prices.  The fact that inflation appears to be lower then expected, tells us that spending is down.  This may prove to be beneficial to Colorado Home Equity Loan rates in the future, but right now investors continue to be skeptical.  We also had information being reported on Pending Home sales, which reported a negative growth number.  The negative numbers did however come in line with current expectation, sending Colorado Home Equity Loan rates into another holding pattern.  The last thing today to impacting Colorado Home Equity Loan rates today will be reports showing the 10 year treasury auction activity for the day.   These numbers have not been released yet but looking at the live feed for Mortgage Backed Securities it appears that the numbers will be favorable.  This favorability will be good for Colorado Home Equity Loan rates.  Remember we are looking for a LOCK recommendation around 5.75% with no points, we hope to have that in place soon.  Stay tuned for more Colorado Home Equity Loan information as economic reports continue to be released.

Tomorrow we do have two more economic reports to talk about, and both these reports will have impacts on Colorado Home Equity Loan rates.  The Bank of England will be making its bi-quarterly announcement tomorrow on current lending rates for the European markets.  Obviously the majority of investors we have in our Mortgage Backed Securities market come from international investors.  These investors influence Colorado Home Equity Loan rates more then any other buying group currently participating in the bond market.  When The Bank of England announces increases in interest rates, their in house investments become more attractive.  The international investors will pull money out of our market and begin to dump it back into their own markets.  This said, we do not expect any surprising news from the Bank of England, but you never know.  Finally, we will have the Jobless Claims report announced around 830am eastern time.  This report is important because it signals increased demand on wages. The four-week moving average and continuing claims are watched more closely for changes. The labor market is considered to be improving when the four-week moving average goes below 400,000. If unemployment goes low enough it can put wage pressure on the economy and can cause increases in Colorado Home Equity Loan rates.  We will update you as soon as the reports are out. 

In short, we had light reporting day and Colorado Home Equity Loan rate appear to be right where we left them yesterday.  The market has shown signs of improvement all day and at last glance continues to see improvements, which is good news for Colorado Home Equity Loan rates.  Though we saw improvements, rates still appear to be at 5.875%.  We are seeing movements in the market that may have Colorado Home Equity Loan rates hit 5.75% sooner the later.  The issue we are seeing is that investors are still pricing their bonds very conservatively, but we may be able to get the 5.75% at no cost in the next day or two if the trend continues.  We are staying on top of any breaking Headline news mainly because of the impact that would have this week on the Mortgage Backed Securities market.  With economic reports at a minimum it does not take much to have Colorado Home Equity Loan rates moving in the wrong direction.  I have additional information available at www.coloradomortgagebanking.com.  Give me a call with any of your Colorado Home Equity loan questions.

Daniel

Colorado Home Mortgage Refinance Loan rates appear to be holding steady today as economic news appears to be light.  We had only one Economic Report to speak of, and though it came in high, it did not impact the market much.  ISM Service index reported higher today then expected, which typically moves Colorado Home Mortgage Refinance Loan rates in the wrong direction.  This report is monitored by the Federal Reserve and does have inflationary implications.  You can read more on that at www.coloradomortgagebanking.com/news

Here are a few smaller economic reports due out this week; Productivity, Pending Home Sales Index; Jobless Claims; and Trade Balance.  All of these reports will have some impacts on mortgage rates, but the biggest mover this week will be the stock market.  Colorado Home Mortgage Refinance Loan rates move in direct correlation with stock market gains or Losses. 

High Productivity allows firms to produce more with an equal amount of labor. If fewer workers are needed, the inflation pressure on wages will be lower. The Productivity report is not a timely report as it is only released quarterly and most of the information in the report has already been released in other reports. The report does provide the best overall picture of the economy’s efficiency.  This report is projected to come in low around 1.2%, anything higher can cause Colorado Home Mortgage Refinance Loan rates to rise.

Pending Home Sales are important but the name pretty much sums up what the report will say.  Right now we are projected to have a negative growth in this area, but that is not new news and as a result Colorado Home Mortgage Refinance Loan rates will not be impacted by this report.   Jobless Claims, which is actually due out on Thursday not Friday like I reported yesterday, will have this week’s greatest influence on Colorado Home Mortgage Refinance Loan rates.  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.  High Jobless Claims signals poor economic conditions.  Poor economic conditions cause investors to invest more in securities and in return will cause Colorado Mortgage Refinance Loan rates to drop. 

I know it is a lot to digest so I will summarize all my blogs within the last paragraph.  Reporting this week will be low as it relates to economic reports.  However the news being report will have some impact, but not as much impact as the stock market itself.  Colorado Home Mortgage Refinance Loan rates will move with the stock market this week.  Since most of the 1Q reports have already been released it appears that this week should go slow.  Current Colorado Home Mortgage Refinance Loan rates are trending right around the 5.875% range with no points.  We are keeping our Lock recommendations at 5.75%.  Please call with any questions you might have on your Colorado Home Mortgage Refinance Loan programs.

Colorado Online Mortgage rates were impacted by a variety of reports today.  Unemployment rate, Non-Farm Payroll, and Factory orders were all released earlier this morning.  These reports were expected to come in low which was being projected in the market before hand.  When the data finally did come in it hit the market hard.  No one expected to hear the positive data released on each of these reports.  Unemployment came in better then expected, but Non-Farm Payroll and Factory orders just blew away the projections and sent investors wondering if we are starting to see signs of recovery.  Investors are sooooo emotional when it comes to reading between the lines.  Payroll numbers came in better then expected, but expectations had job losses at 75K.  So obviously a 20K jobs lost is much better then 75K jobs lost.   We need to remember that we are still contracting as it relates to our Economy.  Colorado Online Mortgage responded negatively to these reports, but I believe we will see Colorado Online Mortgage rates rebound by the end of the day.   We still believe that there will be improvements in Colorado Online Mortgage rates in the days to come.  If you have not locked in your Colorado Online Mortgage rate yet then FLOATING will be my recommendation.  

We are looking to see Colorado Online Mortgage rates to improve beginning next week.  Headline news will be watched closely and Mortgage Backed Securities will certainly react to any activity reported in the headlines.  I have additional information on www.coloradomortgagebanking.com/news if you are interested in getting more details on today’s reports.  Rates are at 5.875% if you are looking to lock your Colorado Online Mortgage.  We believe that FLOATING is your best options and will implement a LOCK recommendation at 5.75%.  Stay tuned and be prepared to lock quickly.  Inflationary reports come out on Monday and this will definitely impact Colorado Online Mortgage rates.  Have a great weekend and God BlessJ

GDP growth came in at .6% which is only .1% higher then the expected.  When expectations are exceeded investor confidence is high.  When investor confidence is high investors tend to pull money out of Mortgage Backed Securities and into Stocks.  This will cause Colorado Home Loan rates to increase as the price of bonds decrease.  This was not the case today, primarily because it did not beat expectations by much and more importantly the current GDP level still sucks.  Colorado Home Loan rates will be unaffected by the higher numbers here.  With in the GDP report you have a number of variables that are analyzed to get GDP numbers.  Durable and Non-Durable goods spending was down and reported lower then any reading since 1991.  We had a recession going on during this time.  Colorado Home Loan rates tend to improve on this type of information.  In fact all of the numbers in the GDP report came in much lower then expected except for Services spending which was the only variable to show any type of growth.  It also was the only reason we had GDP come in higher then expected.

Chicago’s PMI reported a bit higher then expected as well.  The expectation was 47.5 and the data came in at 48.3.  Again, not enough to make any major shifts in the Colorado Home Loan market.  Remember from a previous blog that when the index number comes in below 50.0 manufacturing actually experiences a contraction in the market.  If GDP contracted it would be defined as a Recession (just though you should know).  So even though PMI reported higher it still reported contraction.  Contraction in manufacturing causes concerns for economic growth.  These concerns send investors back to buying safe investments like Mortgage Backed Securities.  When Security demand is up, Colorado Home Loan rates drop.  So all in all, this report did not surprise anyone enough to make the Colorado Home Loan market move.

We did have one inflationary report come out and that was Employment costs.  It was projected to be up .8% however it came in at .7%.  Not much of a difference, but it does send a signal that inflation is not getting out of control.  Anytime I report good inflation numbers I want to put a little caution as it relates to oil.  Oil will be the thorn in our markets foot.  Colorado Home Loan rates will be impacted by inflationary pressures due to oil.  It is inevitable, to what extent will still be determined.  Regardless this report will have a positive impact on Colorado Home Loan rates.

Finally, we did have one employment report come out.  Like all employment reports it is a survey done by an independent survey company.  Some employment reports have significant credibility like the Bureau of Labor Statistics and some have less credibility.  ADP employment numbers indicated an increase in jobs by 10,000 for April, though not always accurate can give us a preview of what may come.  High Job numbers indicate economic recovery and in return cause the demand for Mortgage Backed Securities to drop.  As a result Colorado Home Loan rates will go up. 

Looking at all the reports that are out today and waiting in anticipation of what will be released by the Federal Open Market Committee it is clear why Colorado Home Loan rates appear to be flat right now.  I just checked the Mortgage Backed Securities ticker and it appears we are slightly up in price.  This means a slight improvement for Colorado Home Loan rates.  Not enough to make the rate change, but at least a good directional indicator.  The FOMC will certainly create movement later today and it appears that investors are standing by in anticipation of this information.  I will keep you posted on the information released and for the time being will continue to keep our FLOAT recommendation for Colorado Home Loan rates.  We are in for a bumpy ride, but waiting can pay off in the long run.  If you are not prepared for the ride we should have locked you yesterdayJ  At this point you are buckled in and we a hearing the clanks of the rollercoaster as it goes up the ride.  We are hoping that we hear the sweat sound of air blowing through our hair as we ride the coaster down.  The FOMC will be the deciding factor for this.  In the mean time Good Luck and Call me with your Colorado home loan questions.

I am predicting that the Economic Reports tomorrow will report GDP and Chicago PMI at or below expectations.  These reports if my projections are accurate will cause Colorado Mortgage Rates to drop below the current pricing floor.  This drop will allow us to secure our rate of 5.75%.   This will also open up the door for risk takers to drop below 5.75% over time.  We saw some continued improvements with Colorado Mortgage rates throughout the day, but much of the gain saw this morning was lost again by this afternoon.  The late day loss was due to investors concern about what these two  economic reports will actually say.  With everything we have seen in the market so far, I cannot imagine these reports showing any type of improvement in the market.  The problem is where investors have set the bar.  The bar continues to show expectations far below normal ranges.  Basically the market expects bad data.  If the numbers come in at or below expectations, investors will move to buy Mortgage Backed Securities.  This in return will improve Colorado Mortgage Rates.  

The only other movement we will see in Colorado Mortgage Rates will be the markets interpretation on the FOMC (Federal Open Market Committee) meeting.  The FOMC will release a variety of statements indicating their plan to stimulate the economy.  The FOMC will be expecting another .25% decrease in short term interest rates.  Interest rate decreases help the economy, but tend to be bad for mortgage backed securities.  When Short term interest rates are decreased, investors begin to be concerned with inflation, causing negative ripples in the Mortgage Backed Securities market.  With this said we will continue our FLOAT recommendation until tomorrow.  We are still projecting a decrease in Colorado Mortgage rates through the week.  Though the interpretation on what will be said by FOMC members can impact rates negatively, we just don’t see that happening tomorrow.  Inflation is what we need to watch for.  As each Member of the FOMC board begins to leak information we will all be keeping our ears open for inflation talk.  If the talk is light, Colorado Mortgage Rates will improve.  If for some reason great concern is raised for inflation by the board we will need to prepare for an immediate lock, as rates will certainly rise. Negative inflation news will send Colorado Mortgage Rates back into an uphill climb.  It is up for interpretation, but if the FOMC does anything surprising the market will react negatively.  We can just about get you 5.75% and expect that to be a reality tomorrow.  So far we are implementing another FLOAT recommendation because of how close we are to 5.75%.  LOCKING in the next couple of days may take the risk out of the market but floating for 10 days may get us under the 5.75% we have been so set on breaking through.  Stay tuned and remember to call me for your Colorado Mortgage questions. 

Colorado Home Mortgage Refinance Loan Rates will be impacted by 4 economic reports Tuesday and Wednesday.  Consumer Confidence, Advanced GDP, Chicago PMI, and Finally information coming out of the Federal Open Market Committee meeting.  All of the data coming out of these reports will send signals to the market indicating economic stability.  As you know this information is vital to the pricing of Colorado Home Mortgage Refinance Loan Rates. 

Consumer Confidence has a direct correlation to consumer spending, which accounts for two thirds of the economy. Consumer Confidence also has some correlation with joblessness, inflation, and real income. Typically only changes of five points or more are considered significant with higher numbers pointing to greater consumer spending. There are other pressures that change consumer spending other than consumer confidence, inflation, joblessness, and regional business issues. Consumer Confidence is used to predict the direction of Consumer Spending but because of other influences, higher Confidence won’t always lead to higher Spending.  This report will have an impact on Tuesdays Colorado Home Mortgage Refinance Loan rates.

Colorado Home Mortgage Refinance Loan rates are also influenced heavily by advanced GDP.  GDP is a significant report for several reasons. It is the most encompassing picture of economic activity and when paired with the employment report gives a picture of productivity growth. The data is used to define business cycle peaks and troughs. Higher GDP points to accelerated inflation while lower GDP indicates a weak economy.

The Chicago PMI is measured by new orders, production, supplier deliveries, inventories and employment; asking for positive, negative or unchanged readings of each. A reading above 50% generally indicates that the manufacturing sector is expanding, and below 50% signifies contraction.  So far this year manufacturing shows signs of contracting.  Contraction in manufacturing is considered bad for the economy, but good for Colorado Home Mortgage Refinance Loan rates.

Finally the Federal Open Market Committee meet to determine new monetary policy direction for our financial markets.  So Far the Federal Reserve action has been to lower interest rates, which by 99.9% of Americans means interest rates are falling.  THIS IS NOT TRUE.  Lower short term rates means more liquidity more liquidity means more spending.  When the economy spends more it does stimulate the economy, but it also has very negative influences on inflations.  We all should know by now that high inflation means Colorado Home Mortgage Refinance Loan Rates will suffer.  We expect the information coming out of Wednesday Federal Open Market Committee meeting to signal a .25% short term interest reduction.  Anything higher will cause Colorado Home Mortgage Refinance Loan Rates to increase out of fear for inflation. 

I have Colorado Home Mortgage Refinance Loan rate information posted at www.coloradomortgagebanking.com/news  In the mean time let me know of any Colorado Home Mortgage Refinance Loan Rate questions you might have.  FLOAT remains our recommendation and you can read more about that at the site listed above.  Best of luck and seem my post tomorrow sometime after 1pm.