Colorado Home Mortgage Banking

Colorado Home Mortgage rates appear to handling the news well with the recent Fed Cut announcement.  The market expected a .25% rate reduction and today they got just that.  Investors were a little gun shy on buying Mortgage Backed Securities and once the FOMC reported to the public Mortgage Backed Securities took off.  Colorado Home Mortgage rates appear to be having a real good day.  Stay tuned tomorrow for more Colorado Home Mortgage updates.

Colorado Home Loan rates have not moved at all today.  We had GDP and PMI reported earlier today and both reports made very little impact up or down for Colorado Home Loan rates.  These reports did come in slightly above expectations, but it was close enough to say expectations were met.  Normally this would have a negative impact on Colorado Home Loan rates, but so far the impacts have not been felt in the Mortgage Backed Securities Market.  We are now waiting in anticipation for what the Federal Open Market Committee has to say.  We are all hoping that they do not make any comments about inflation.  Inflation talk will certainly be bad for rates.  We do have a large number of other economic reports coming out over the next couple of days and we are hoping that the data will be good for Colorado Home Loan rates.    Currently Colorado Home Loan Rates are still trending at that 5.875% - 5.75% depending on which investor and at what cost.  If the FOMC reports as expected and don’t do anything unexpected we believe that Colorado Home Loan rates will begin to see some improvements.  I will be out for lunch when the FOMC finally reports and will give you a quick recap later today.  In the mean time we are still recommending a FLOAT on your Colorado Home Loan rate, but we are heading into the eye of the storm and will be in for a bumpy ride if the information released later today does not come in as expected. 

Colorado Home Mortgage Loan Rates saw its improvements continue today.  Consumer Confidence came in low but it did come in as expected.  Normally when expectations are met Colorado Home Mortgage Loan Rates begin to rise.  This does not seem to be the case in the market today.  Colorado Home Mortgage Loan Rates did shift lower today, but not enough to break through the current pricing floor.  The market has shown signs that a break through will happen, but it will take the variety of economic reports coming out tomorrow to make any real lasting effects on the Colorado Home Mortgage Loan market.  We can now get 5.75% for anyone looking to take the risk out of the market locking today may pay off.  Personally my recommendation remains as a FLOAT.  We believe the information being released tomorrow will be positive for Colorado Home Mortgage Loan Rates, and we are hoping that this will carry over the next couple of weeks.    Stay tuned tomorrow for breaking news on Colorado Home Mortgage Loan Rates, each report will impact the market differently and I will keep you posted.  Best of Luck and call me any time.

Looks like we had another good day for Colorado Home Mortgage Refinance Rates.  At this point we are preparing for a number of Economic reports that will impact the market over the next couple of days.  Colorado Home Mortgage Refinance Rates appear to be making up some ground lost in the last three weeks.  We are still looking at a rate of 5.875% for Colorado Home Mortgage Refinance Rates, but should see this drop by May 1st.  There is a pricing floor to break through before we see any real movements with interest rates.  This current floor appears to be set at 5.875%, and we are quickly seeing the barrier break, which means rates should drop down to 5.75% very soon.  Once the barrier breaks, interest rates will move quickly, and we may see enough activity in the data to lower rates back to our 4 week low.  We will keep our fingers crossed and will continue to report the direction we are moving. 

Consumer Confidence will be reported on tomorrow which should come in similar to Consumer Sentiment.  If this happens we will see another good day for Colorado Home Mortgage Refinance Rates.  Looking at the projections I do have a little bit to be concerned about.  Consumer Confidence has been trending higher then Consumer Sentiment this year. Experts are projecting that Consumer Confidence will actually come in lower then Consumer Sentiment this month.  This raises a bit of a red flag, in the sense that expectations are set too low, leaving room for Consumer Confidence to beat current expectations.  Historically when expectations in economic reports come in higher the projected Colorado Home Mortgage Refinance rates suffer.  Though this is a concern, I would not be too worried; we are still in for some rough economic news.  We expect the data reported tomorrow to be good for Colorado Home Mortgage Refinance Rates. 

Wednesday we will have our big end of the month numbers for GDP, PMI, and Federal Open Market Committee notes.  All you need to know is that we have enough data to break through the pricing floor of 5.875% which should put us back in line for a possible lock recommendation.  I will be making this recommendation at 5.75%.  If you want to gamble gambling may pay off.  Holding out another 10 days or so may get us the 5.5% we have been so desperately trying to get.  I will report more on Colorado Home Mortgage Refinance Rates tomorrow.  Be prepared to Lock quickly in the mean time we still have a FLOAT recommendation on your Colorado Home Mortgage Refinance Rate.  I will be explaining a little bit about the reports being released in the next day or two on www.coloradohomemortgageloan.net/news Sorry about the late post today, stay tuned after 1pm tomorrow for information regarding Consumer Confidence.  In the mean time call me with any of your Colorado Home Mortgage Refinance Rates questions:-)

Mortgage Backed Securities were sold off in mass numbers overnight in the foreign markets, sending today’s opening numbers right into the cellar.  Colorado Home Loan rates started the morning off about .25% higher then yesterdays closing Colorado Home Loan rates.  We are now seeing Colorado Home Loan rates hitting 6.0% which has me a bit concerned on where rates will finally cap at, before we begin to see some relief.  Its getting harder and harder to tell people to floating especially since rates continue to rise.  With that said we should keep one thing in mind, and that is as much as rates have gone up over the last 3 weeks rates still remain right around 6.0%.  6.0% Colorado Home Loan rates are still better then our 12 month peak points and continues to be a respectable rate.  I don’t want to alarm anyone right now it just appears that the market is experiencing instability.  With this instability investors are acting on fear that the Mortgage Backed Securities market will some how loose its current credibility.  The fear should soon dissipate from Mortgage Backed Securities and confidence to buy will return as investors begin seeing losses within the equities markets.   We need to remember that the market will respond accordingly to the economic data being released, even though we are not seeing it reflected in the price of Colorado Home Loan rates today.  Historically Mortgage Backed Securities have had their movements primarily dictated by economic reports released through out the month.   This does not appear to be the case now we what we are seeing in today’s market is the exception.  We will get back to our old predictability soon, especially as we get more and more negative economic data.  As expected, Consumer Sentiment came in at a 30 year low, hitting the lowest Consumer Sentiment reading since 1982.  Consumer Confidence is expected to come in just as low, which will be the push we need to have Colorado Home Loan rates moving back into the right direction.  What is disappointing about what we are seeing in the market is that these reports should have moved rates considerably lower today, but instead will only stop Colorado Home Loan rates from increasing.  We should see the market find the stability it needs over the next week or so at which point we should see rates begin to fall.  Stay tuned and call me with any of your Colorado Home Loan Rate questions.

Investors in the Mortgage Backed Securities market continue to amaze me.  Today Durable Goods came in weaker then expected which should translate to positive movement for Colorado Mortgage Rates.  So far today Colorado Mortgage rates have gone up about .125% to .25% the reasoning still baffles me a bit.  We had three Economic reports coming in Durable Goods, Jobless Claims, and Home sales.  Colorado Mortgage rates will certainly respond to the data released in each of these reports.  Durable Goods came in below expectation and should have a positive impact on Colorado Mortgage rates.  Home sales came in far below expectations which again should be good for Colorado Mortgage rates.   Finally, Jobless Claims did come in better then expected, but this report does not typically move the Mortgage Backed Securities market that much.  This will drive some of the movement in the Colorado Mortgage market, but overall the news should be positive for Colorado Mortgage rates.  So the question is why has Colorado Mortgage rates not improved.  The only reasonable explanation to me has been the recent activity seen in reports about corporate profits.  Ford Motor Company posted a profit which exceeded expectations.  Ford Motor Company continues to be a market leader and positive profit news will be positive news for stocks.  Though Ford exceeded expectations we continue to see other companies reporting their expectations far below investor’s projections.  In short the Ford profit increase, though good for stocks, will not be good enough to make up for all the other companies.  We may still be feeling some of the effects of yesterday’s news on the 1Q 1.7 Billion Dollar loss from Ambac.  The reason this is so significant is that Ambac is an insurance company backing current Mortgage Backed Securities in the event of default.  If a company like this has issues it rocks the Colorado Mortgage sector to its core.  Fear spreads like wild fire and investors begin to react.  Investors tend to come back in line after a few days when stock investments begin to loose there appeal.  This happens as more and more companies report negative profit gains for the 1Q.  We should see these things come back in line soon.  We are still at a high point and my Recommendation remains as a FLOAT, the issue we are facing in the economy will become headline news again and rates should start dropping again.  The good news now will be the lack of Economic data over the next 6 days and investors begin to speculate on what will be reported on April 30th.  April 30th will be the deciding factor for the month of April, and will be what makes or breaks Colorado Mortgage rates for the month.  If it is getting to hot and you want to cut losses and Lock your Colorado Mortgage Rate, we will more then likely be locking you in at 5.875%.  Most of my clients were promised 6.0% or below and my goal continues to be 5.5%, but the likely hood of 5.5% becomes tougher and tough each day.  The Colorado Mortgage market over the next 45 days indicates that locking in at 5.75% should be our goal and a Lock recommendation will be made at 5.75%.  If your Colorado Mortgage closing date is beyond the 45 days we can still hold out for 5.5%.  Let’s use caution, but so far the data still indicates improvements are on the horizon.  Stay tuned and please call me with your Colorado Mortgage needs.

Today should be a light trading day for Mortgage Backed Securities.  As a result Colorado home Loan rates will fluctuate up and down throughout the day.  At this point if you have not locked your Colorado Home Loan rate you have basically committed that you will float through tomorrow.  We will be getting the Durable Goods report which 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.) 

Last month the Durable Goods report came in with negative growth number sending Colorado Home Loan rates immediately into favorable pricing.  Investors have set their expectations tomorrow indicating minimal growth in this category.  I believe that the expectation is still to high and that for the second straight month we will see negative numbers.  I will tell you why.  Durable goods growth indicates expansion in the economy.  In order to report positive growth for Durable goods companies would have to be projecting future increases in production.  Right now all the signs in the market indicate that production has decreased.  If we have decreased production will companies be focusing on increased future production? If I am right about the Durable Goods number we should see Colorado Home Loan rates improve. 

The last thing to monitor will be the Mortgage Backed Securities market today.  No matter what you want to believe there will always be some insider trading going on and if we see any major trends in the market it might be a preview for what is in store for the reports due out tomorrow.  So far the Mortgage Backed Securities market has traded down causing Colorado Home Loan rates to increase slightly today.  We definitely do not want that type of trend, because it could indicate that tomorrows Durable Goods report will come in higher then expected.  If that is the case Colorado Home Loan rates will certainly increase over the next few days.  Stay tuned for a late day buying frenzy if this happens I would bet that the report tomorrow on Durable goods comes in lower then expected.  Just my opinion, but lets see what happens.  I will keep my FLOAT recommendation in place and maybe by this time next week we will be able to lock in 5.5% yet again.  Stay tuned and call me with any questions.

Retail Home Sales data came out today and so far the information has not surprised anyone.  Retail Home sales are definitely at a low point and the market continues to responded as expected.  Colorado Home Mortgage rates have improved for the third straight day.  Now it is up to the lenders to release Colorado Home Mortgage rates that fall more in line with what the market is showing.  I have had a lot of questions asking me how the market prices out Colorado Home Mortgage loans, versus what the borrower actually pays for their Colorado Home Mortgage.  There are two Colorado Home Mortgage markets to obtain a loan from, Retail markets and Wholesale markets.  Both these markets work the same as it relates to the type of Colorado Home Mortgage loan, the only difference is availability and price.  Retail organizations like Wells Fargo direct, First Horizon, and any other local banking institution only offer portfolios tied to their individual lending criteria.  They will also charge a premium of 2% before any origination cost are added.  This premium is added to the 5.5% coupon rate found on the Mortgage Backed Securities market.  So in short if the 5.5% coupon market is selling at 100.00, which represents the coupons original price.  When this occurs the coupon is said to be selling at PAR.  Your Colorado Home Mortgage Rate would be 5.5% with no one in the business making any premium unless origination and other charges are added to the loan.  Regardless of what origination or fees are charged the retail side of the house will always charge a premium that comes from the rate.  In order to get the 5.5% coupon bond at 102.00 retailers will charge a higher rate to obtain the 2% premium Retail shops price in to sell their Colorado Home Mortgage rate.  Retailers will offer you a Colorado Home Mortgage rate around 6.25% or 6.5% to obtain this premium.   In the Whole sale side (which I am a part of:-)) you will get the rates directly from the Mortgage Backed Securities market.  The Lender offering the Mortgage Backed Security will still put a premium on these Colorado Home mortgage rate, but instead of 2% it is 1%.  This means that the 5.5% coupon bond will price at 101.00 which means we can offer you a better Colorado Home Mortgage rate.  Normally about 5.75%, again based on today’s numbers.  This is a full .5% better then retail. 

So the real question here is why are we not seeing all of the savings we should be seeing in the market?  Well the market has just come off of inflationary reports and inflation is very bad news for Colorado Home Mortgage rates.  These numbers did come in as expected, but lenders will typically wait a few days to make sure that the inflation risk has jumped out of the Colorado Home Mortgage market.  Instead of pricing in 1% which is typical they currently have priced in about 1.25%.  This should find its way out of the market the next few days.  Retail shops have it even worse with about 2.25% currently priced in.  We will continue have a FLOAT recommendation for Colorado Home Mortgage Rates.  All signs show that rates are getting better and we should continue to hold out until the market tells us something different.   As usual call me with any of your Colorado Home Mortgage questions.  Good Luck and Stay tuned

Colorado Home Mortgage rates are heavily influenced by the economic data released on a regular basis.  The data released by a variety of reporting agencies indicate the direction and current status the economy is in.  These reports are not released everyday and from time to time we actually have a 3 or 4 day lull.  Colorado Home Mortgage rates have a hard time reacting to the lack of data, so in times of light reporting, Investors for Mortgage Backed Securities look to the Headlines for market moving information.  Colorado Home Mortgage rates will be impacted by financial information coming from the stock market.  This information will be scrutinized by investors almost as much as the economic data itself.  Before I get into the headlines, Colorado Home Mortgage rates today saw an improvement from late last week.  We will be keeping our FLOAT recommendation at least for now.  So far everything in the MBS market is indicating improvements,  we may even see a mid day PRICE ALERT: for the better.  I have said many times that investors tend to over react and I believe that this took place last week.  Hopefully we did not have anyone locking in last week.  Those that waited will more then likely see thier risks pay off in lower Colorado Home Mortgage rates.  We will need to stay tuned to April 24th.  We will have the durable goods report coming out and though this report in itself does not make a big impact on the market, it will make its mark.  Colorado Home Mortgage rates will feel the impact because of the lack of data currently seen in the market.  Durable goods will be the 1st big economic report in 7 days and Mortgage Backed Securities will certainly react to the data.  In the mean time here are some of the headlines currently making its way around the market:

Bank of America reported a Profit decline of 77%.  This Profit decline came in credit losses and write downs.  Normally this would be a good sign for Colorado Home Mortgage rates, but Bank of America represents a big part of the mortgage business, and confidence will be low.  Colorado Home Mortgage rates will react neutral overall to this news.  Oil continues to trade at its highest price point ever.  This price point causes some concern for Mortgage Backed Securities, because it signals bad inflationary pressures.  These inflationary pressures cause bonds to be devalued which in return causes Colorado Home Mortgage rates to rise. Finally, we are seeing more analyst and economist predicting that future GDP reports will show that we are heading into a recession “Wow that’s a surprise”  The number of experts reporting this data has increased over the last few months and these numbers represent a similar trend reported in the 2001 recession.  Colorado Home Mortgage rates will respond very well to recessionary pressures.  These pressures will come out in the economic data being reported.  We have our next GDP report on April 30^th.  April 30^th will be a big day and so far preliminary information indicates that the reporting will come in lower then expected, which in return will give Colorado Home Mortgage rates the help it needs.  So we are back to my initial recommendation which is to FLOAT your Colorado Home Mortgage rate for now.  Call me with questions, if you have more time to read go to www.coloradohomemortgageloan.net/news with more information.  

We have a Colorado Home Loan Price Alert for the better.  Looks like the lemmings on Wall Street are starting to come to their senses.  I Still recommend a Colorado Home Loan FLOAT, but stay tuned to the stock market for any other big corporate reports.  So far Colorado Home Loan rates have made up everything lost from yesterday making the two day combine margin actually higher then what was quoted on Wednesday.  Colorado Home Loan rates do appear to be worse then Wednesday which means that lenders have the Colorado Home Loan Programs priced to high.  We expect lenders to get back in line by next week.  Stay tuned and call with your Colorado Home Loan questions.