Colorado Home Mortgage Banking

Colorado Mortgage rates take another hard hit on global concerns for inflation.  Leading the attack on inflation was Ben Bernanke the head member of the Federal Reserve.  The recent publicity surrounding Inflation concerns has driven investors right out of the Mortgage Backed Securities Market.  Colorado Mortgage rates took about a .5% hit over the last two days and may have caused some major issues for people currently trying to obtain a Colorado Mortgage rate.  I would be talking to your Colorado Mortgage broker and make sure that your Colorado Mortgage rate got locked in.  If it did not you may see some unexpected Colorado Mortgage rate changes.  Don’t let your current Colorado Mortgage Broker beat around the bush ask for a Colorado Mortgage Lock Confirmation, if they can’t supply it odds are they did not get you locked in. 

The only major economic report was the Trade Balance. The international trade balance measures the difference between imports and exports of both tangible goods and services. Imports may slow domestic growth. Exports boost domestic production.  The volatility in the monthly trade balance can play an important role in forecasts of GDP. Net exports are a relatively volatile component of GDP, and the trade report provides early clues to the net export performance each quarter. Growth in GDP will illustrate the basic components in the health of our economy.  Colorado Mortgage rates normally do not get to distracted by this report unless something very unusual is reported as it relates to what was expected.  The report today came in as expected so no major movements related to this report was felt in the Colorado Mortgage rate markets.

We will need to wait for more economic data to see if the direction on Colorado Mortgage rates will keep trending up or if some of the lost ground can be made up.  Regardless much of the increases seen in Colorado Mortgage rates today have come from speculation not an hard economic facts, and because of this much of the losses can be regained.  We will have to wait for more data, but we could see some nice improvements over today in the next week or so.  Inflation is a concern and with the cost of oil at an all time high it should be noted that the concern is legitimate, but so far actual economic data indicates that the reactions felt in the market today may be excessive.  Colorado Home Mortgage Refinance Loan rates are expected to improve a bit once the dust settles, but it will take some time to regain all the ground lost in Colorado Mortgage rates. 

In times of high Colorado Mortgage rates it is important to work with people who understand the market.  We provide our clients with options and when fixed rates are high other options can be considered.  Now the difference between us and the other Colorado Mortgage Broker is that we will educate you on what you need to make the right Colorado Mortgage choice.  Today we are offering a rate at 5.375% which should be considered especially since most of the fixed rate programs right now are around 6.25% - 6.5%.  Regardless of which direction you take on your Colorado Mortgage rate we want to help.  Give us a chance to earn your Colorado Mortgage business you will not be disappointed.

Daniel

Colorado Online Mortgage rates take another hard hit today.  We are at our highest 30 year fixed Colorado Online Mortgage rate for 2008.  Historically speaking Colorado Online Mortgage rates are still good, but certainly not as good as they were 3 months ago.  So why are we facing all of these price increases to our Colorado Online Mortgage rates?  The answer is simple:  Inflation.  The fear of inflation is the biggest cause for movement in the Colorado Online Mortgage markets.  Investors holding on to long term bonds see the value of those bonds decrease as the value of on money decreases.  Colorado Online Mortgage rates are tied to a fixed rate income stream and anything impacting that income stream will cause Mortgage Backed Securities to drop in value.  Colorado Online Mortgage rates react inversely to the price of bonds, which is why Colorado Online Mortgage rates have gone up. 

Now what information do we have to show that inflation is on the rise?  Consumer Price Index and Producer Price Index are both leading economic reports showing inflationary pressure.  Both reports have major impacts on Colorado Online Mortgage rates, but interestingly enough, both reports came in better then expected for the month of May.  So why does inflation appear to be a problem?  More importantly why is it impacting Colorado Online Mortgage rates?  Well another big mover of Colorado Online Mortgage rates come from information released by the Federal Reserve.  When the Federal Reserve speaks investors listen very closely.  So closely in fact that they tend to read into things that may or may not have been the intent of those releasing the information.  Colorado Online Mortgage rates tend to jump up when Federal Reserve members begin to talk about inflation. 

Richard Fisher the Federal Reserve board member representing the Southern States spoke to the media earlier today.  Mr. Fisher expressed great concern about inflation stating that Americans should be wary of “stirring the embers of inflation.”  Colorado Online Mortgage rates jumped quickly on fears that inflationary numbers will appear higher in the months to come.  Another major fact on inflation comes in oil prices.  This is something we can see now and it is right in front of us.  The cost of shipping increases when oil prices are high.  When Shipping costs go up so do prices, which is what inflation is.  It’s hard to know exactly what will happen in the months to come as it relates to Colorado Online Mortgage rates.  It appears that there is a struggle between bad economic data, which is good for Colorado Online Mortgage rates and inflationary concerns which is bad for Colorado Online Mortgage rates.  Depending on what investors are motivated by, will dictate what direction Colorado Online Mortgage rates will go.

Colorado Online Mortgage rates were also impacted by new home sales which was the only official economic report released today.  The numbers came in far better then expected which created even more momentum as it relates to the increases seen in Colorado Online Mortgage rates today.  Finally we are seeing signs of an economic Term not used since the Reagan administration: “Stagflation” A real problem and an obvious answer to what is going on today.  You can read more about this at www.coloradohomemortgageloan.net/news.  You may find that to be an interesting read.

The final analysis for the day will be whether to Lock or Float.  It’s hard to recommend Floating when Colorado Online Mortgage rates continue to rise.  It’s even harder when there are no obvious signs that Colorado Online Mortgage rates will stop rising.  However if you are looking at the long term picture FLOATING makes sense.  If you are closing in 15 days or greater then FLOATING may pay off.  Most investors have hedged a considerable amount in the pricing for a 30 year fixed Colorado Online Mortgage rate.  They may be a bit too cautious and in return Colorado Online Mortgage rates are worse then they should be.  Colorado Online Mortgage rates have room to drop but we may not see any drops soon.  Especially, if Bernanke speech tonight reaffirms Fishers concerns on inflation.  Fisher is known to fear inflation and to have that as his primary focus, but if the big man on the board begins to sing the same tune, we will see Colorado Online Mortgage rates go up even further.  If you can LOCK a 30 year Colorado Online Mortgage rate for 6.0% then go ahead and LOCK.  I am moving my new LOCK recommendation to 6.0% and will push my clients to LOCK in at that Colorado Online Mortgage rate.  I expect that we will gain some of the lost ground for Colorado Online Mortgage rates over then next few weeks, but for now Inflation continues to be the hot topic which is bad for Colorado Online Mortgage rates. 

If you have questions or need any help with your Colorado Online Mortgage please give me a call directly.

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. 

Colorado Home Mortgage rates continue their up hill climb as new fears on inflation hit the market.  Colorado Home Mortgage rates reacted to Bernanke’s statements, which expressed concern for inflationary pressures.  He stated that we are not in jeopardy of hitting the inflationary numbers seen in the late 1970’s, which sent Colorado Home Mortgage rates into double digit levels.  He did state that his primary concern is price stability and inflation and that it will be the Federal Reserves primary objective to limit the impacts it my cause.  Colorado Home Mortgage rates did take a hit on investors concern about inflation.  It almost seems as if anytime the word inflation is mentioned by the Federal Reserve Colorado Home Mortgage rates begin to climb. 

We had only one economic report released and that was the Jobless Claims data.  This report does create some movement in Colorado Home Mortgage rates and today it was just enough to send rates back up for the 3^rd straight day.  Those who got into some of the long term locks we talked about early last month should be doing quite well.  We will continue to monitor the situation and let you know of any Colorado Home Mortgage rate movements.  Right now it appears that most of the bad news hitting the market has already done so.  At this time we will recommend that you FLOAT your Colorado Home Mortgage loan.  At last glance the Colorado Home Mortgage loan market appears to be making up some of the ground lost early this morning.  We will have to monitor the Employment numbers coming out tomorrow as this will definitely create some movement with Colorado Home Mortgage rates.  So far it appears that the month of June is shaping up like the month of May and Colorado Home Mortgage rates appear to be heading in the wrong direction.  Call me for you Colorado Home Mortgage questions.  If you are looking to close in the next week and just can’t hold on any longer on your Colorado Home Mortgage rate lock then make sure you lock at 6.0%.  The Colorado Home Mortgage originator will have to take a hit on their commission, but heck they should be thinking of you first and it is where I would lock my Colorado Home Mortgage rates today.

Colorado Home Mortgage rates will continue to be impacted by anything related to inflation and we will keep our ears open for anyone making any derogatory comments about inflation.  It is this type of talk that can send Colorado Home Mortgage rates back up to their three year high mark and it is not where we would like to be.  We still have options on Colorado Home Mortgage rates that can get you a Colorado Home Mortgage rate at or below 5.5%.  Finding it hard to believe? Well call me and I will explain.  The program requires no points and it is becoming a good solution to a time when Colorado Home Mortgage rates appear to have no cap in sight.  Remember to check out my other Colorado Home Mortgage site www.coloradohomemortgageloan.net to get the specifics on economic data being released.  Economic data moves Colorado Home Mortgage rates more then any other data released and should be understood before making a Colorado Home Mortgage lock decision.

Thanks Daniel