Colorado Home Mortgage Banking

Colorado Home Mortgage Loan rates have reached the inevitable Ceiling of resistance in the Mortgage Backed Securities market.  For those who do not know what the Colorado Home Mortgage Loan price Ceiling is will need to pay special attention to what is said next.  The bond market has certain price points that investors become very cautious at, and the demand curve changes when these price points are achieved.  However once the price point is penetrated a new pricing Ceiling will be defined.  Like a price Ceiling, bonds can also have a price Floor that will react in a similar manner.  The price floor or price ceiling is determined by the direction bond prices are going. 

Now that I royally confused you let me give you an example of what I mean.  Let’s say the price of a bond is $100 and investors begin to buy and sell those bonds depending on the demand.  All of a sudden something is reported in the economic data that favors bond prices and the $100 bond begins to rise; $101, $102, $104, $107 . . . and so on.  Obviously as the bond price increases, Colorado Home Mortgage Loan rates begin to decrease.  There is an Inverse relationship between bonds and Colorado Home Mortgage Loan rates.  Anyways, as the price of the bond increases it tends to increase fairly quickly, but at a certain price point investors change their demand.  The point where demand for bonds changes is the point where bonds hit the proverbial wall of resistance.  In this example that might be $110. This is a point that the market will not generate any additional demand for bond price increases. In the event this happens Colorado Home Mortgage Loan rates will be held in its place until something different happens in the market to create more demand.  In order to create more demand additional economic data will need to make its way into the market that favors Mortgage Backed Securities.  If this happens then the price ceiling barrier will be broken and a new price ceiling will be established.

How does that impact your Colorado Home Mortgage Loan rates today?  Well we are hovering right around that 6.25% and 6.0% range for the 30 year Colorado Home Mortgage Loan rate.  If we have additional economic news reporting, that favors Colorado Home Mortgage Loan rates we might see the 30 year fixed rate move below 6.0% again.  Right now we are just waiting for something to happen.  Today, we did not get the push we needed to break that point of resistance.  In a short week it is hard to determine what might be needed to see Colorado Home Mortgage Loan rates drop below that 6.0%.  We have a very big day on Thursday which will set the tone for Colorado Home Mortgage Loan rates for the month of July.  Historically the summer months have not favored Colorado Home Mortgage Loan rates, and so far history has repeated itself.  We are looking for any reason for rates to improve, but it seems that anytime we have nice improvements, inflationary pressures came back in the Headlines.  So we need to look at what will happen and when is the best time to react.  If you are looking to lock in your Colorado Home Mortgage Loan rate in the near future then LOCKING now would be a good idea.  Most lenders have priced in the improvements seen in the Colorado Home Mortgage Loan market last week.  You should be able to get 6.0% today, and if it is offered you should take it.  If you are looking to close your loan in the next couple of weeks then Floating until Thursday may pay off.  However the risk/reward ratio does not appear to favor you.  My recommendation for today is to LOCK.  You will be .25% better then anything last week and about .5% better then two weeks ago. 

I will be keeping a close eye on all the reports due to be released this week.  If you want a brief explanation remember to visit my other site: www.coloradohomemortgageloan.net/news if you have any Colorado Home Mortgage Loan questions please let me know.  I hope to service you in the near future.    

Colorado Home Mortgage Loan rates saw some relief from a variety of economic reports indicating no major surprises.  Inflationary numbers appeared to be in line with expectations and the feared increases in inflation brought on by the Federal Reserve appear for now to be overstated.  Colorado Home Mortgage Loan rates dropped a bit on the news, but best of all, rates don’t seem to be climbing.  A much needed break from what Colorado Home Mortgage Loan rates have been doing over the last couple of weeks.  It may take some time before we see Colorado Home Mortgage Loan rates drop significantly, but for now we are heading in the right direction.  We had four economic reports released today, you can read more about their exact impacts at www.coloradohomemortgageloan.net/news but the overall effect from these reports were positive.  I am maintaining a FLOAT recommendation through Thursday, mainly because not all of the Colorado Home Mortgage Loan rate improvements have shown up on the investor rate sheets.  Much of the improvements are being held back right now in the event something else rocks the bond market as sparks another sell off of Mortgage backed Securities.

Colorado Home Mortgage Loan rates still appear to be undervalued in the bond markets. Based on the economic data reports; we still have some room to see rates trickle down even further.  The MBS market closed 14 ticks higher then when it closed yesterday, which translates to about 1/8^th better for Colorado Home Mortgage Loan rates.  We should continue to see improvements tomorrow as no economic data will be released.  The lack of data allows headlines to dictate market movement, and we have already seen a bulk of the bad headlines make its way into the market.  I am expecting Colorado Home Mortgage Loan rates to maintain its current downward direction through tomorrow.  Thursday will be another big day on the economic reporting front with three additional reports will find its way into the market.  Jobless claims, leading indicator, and Philadelphia Fed Index are all due to report, and based on the consensus, I believe we could have another good day for Colorado Home Mortgage Loan rates. 

We should not forget that we still have some major obstacles to overcome before Colorado Home Mortgage Loan rates see anything below the 6.0% range.  It has been awhile since I recommended a LOCK situation and would advise you to seriously look at locking tomorrow if in fact you are closing in the next 10 days.  My goal for your Colorado Home Mortgage Loan rates is to see it at 6.0% or below.  I have had to move my Colorado Home Mortgage Loan rate lock recommendation up and up based on market conditions, but we have been able to lock in under small pockets of rate drop periods.  It has been very tough over the last 3 weeks and we have had the FLOAT recommendation ever since.  I believe if we continue to see the movement we are seeing over the last few days Colorado Home Mortgage Loan rates may find its way back to 6.0%.  Right Now I do not see that in the cards for at least another 2 weeks, which means a lot of momentum needs to show up before Colorado Home Mortgage Loan rates drop to that point.  If time is not on your side, we have other options to keep you below 5.5%, but these options are only a temporary fix.  If you need to LOCK today and only want a FIXED rate option then 6.25% will be the Colorado Home Mortgage Loan rate to settle for.

Please call me with your Colorado Home Mortgage Loan rate questions and give us a chance to show you what we can do for you.

Daniel   

Colorado Home Mortgage Loan rates appear to be on the rise yet again.  I will get into the more technical reasoning on why at www.coloradohomemortgageloan.net/news.  For now let’s keep things simple.  Colorado Home Mortgage Loan rates continue to climb on information being released that inflation has begun to increase higher then expected.  So far we have seen the biggest increases since 2007 and it appears that we are not slowing down.  Let’s take a look at the variety of economic reports which came out today and had an impact on where Colorado Home Mortgage Loan rates were heading.  The first was Retail Sales which came in better then expected but not enough to show any strong improvements with our Economy.  It was enough however to move Colorado Home Mortgage Loan rates in the wrong direction.  I don’t know why the increased level in sales was such a surprise.  I honestly believe that the consensus was set too low.  In a society willing to spend whatever they have what else do you think could happen as millions of Americans received tax refund checks.  This should not have been the surprise it was and it certainly should not have caused Colorado Home Mortgage Loan rates to move the way they did. 

Colorado Home Mortgage Loan rate movement can be contributed mainly today to the on going negative inflationary news being released by economic data and media attention.  Colorado Home Mortgage Loan rate sensitivity is at an all time high especially on anything related to inflation.  Import and Export prices were released indicating increased price movement over last month.  This is an inflationary report and will have an impact over today’s Mortgage Backed Securities market.  The consensus for Import and Export prices were that prices would remain unchanged, but in stead it came in showing an increased price movement.  The price increase indicated that inflation was on the rise and as a result the market reacted accordingly.  The pressures realized in the report created more upward movements in Colorado Home Mortgage Loan rates.  I am not sure why experts though inflationary pressure would be lower this month then last month, but that is what the consensus stated.  I am a bit surprised that the consensus on price movement was so low, I would have predicted some movement but I guess that is why the experts release the consensus data in the first. 

Colorado Home Mortgage Loan rates reacted to one other economic report being released today which was the Jobless Claims report.  This report came in worse then expected and was the only report today that should have helped Colorado Home Mortgage Loan rates.  However the news was not good enough to stop the upward movement already felt in the Colorado Home Mortgage Loan rate market.  Inflation is obviously the primary concern right now and the Federal Reserve Board is not holding back.  We have heard from several members lately that inflation is quickly becoming the Boards Primary objective.  Yesterday Charles Plosser went on record expressing concern and his focus on a growing inflationary problem.  The message delivered by Charles Plosser could have in itself created much of the movement felt today on Colorado Home Mortgage Loan rates.

 Finally it has become increasingly more difficult to put a LOCK or FLOAT recommendation in place but here are the facts and you make the decision.  If CPI reports higher then expected tomorrow Colorado Home Mortgage Loan rates will continue to climb even higher then current rates.  We are at a point where the price ceiling has been breached and Colorado Home Mortgage Loan rates will move up quickly.  If you are going to close in the next 10 days then LOCKING would be recommended.  The risk reward is not that good.  If you have time to gamble then a lower then expected CPI report will have rates improve quite a bit.  We just don’t know how much the inflation fears will continue to cause Colorado Home Mortgage Loan rates to move.  One thing to think about current Lenders have hedged themselves a bit too much putting them in a safer position.  In the mean time they are putting consumers in a position where Colorado Home Mortgage Loan rates are about .25% higher then they should be.  This is why a low CPI report should move Colorado Home Mortgage Loan rates down fairly quickly.   I will talk a lot more about interest rate movement on www.Coloradohomemortgageloan.net/news but for now LOCK if you are closing in the next 10 days, FLOAT if you have over 15 days before closing.

Call me with your Colorado Home Mortgage Loan questions.

Daniel   

Colorado Home Mortgage Loan rates increase again on positive Durable Goods data.  The Durable Goods report came in better then expected showing only a .5% negative increase versus the projected .7% decrease.  The news sent Colorado Home Mortgage Loan rates on an up hill climb.  Today we will certainly see Colorado Home Mortgage Loan rates around 6.0%.  Though the information came in better then expected, historically the figure is still considered poor for industry standards.  The positive driving factor in Durable Goods came from its core component, which showed a positive growth of 2.5% versus the projected .7% decrease.  This was viewed by many experts and investors as an extremely good sign for potential recovery.  It should be noted that the durable goods report still indicated a declining figure which means that manufacturing sectors are still contracting. Investors are putting all their bets on the Core component which actually showed a positive growth figure.  I made the recommendation to FLOAT and those who FLOATED will be paying a higher price today for their Colorado Home Mortgage Loan rate.  I will continue to push the FLOAT recommendation through Thursday, because at this point most of the damage in Colorado Home Mortgage Loan rates has already taken place.  Locking your Colorado Home Mortgage Loan rate now would have you locking at this months high point.  You have already demonstrated that you are willing to take risks so you might as well ride out the other reports coming in over the next few days.   We also have preliminary GDP being reported today which could bring things back a bit from the low points felt this morning.

Colorado Home Mortgage Loan rates have also been impacted by Crude Oil.  Crude Oil appears to be loosing some ground which investors are viewing as a positive for the equities market.  Money will be pulled out of Mortgage Backed Securities in order to capitalize on a growing equities market.  When money is pulled out of the bond market demand decreases, which in return, increases Colorado Home Mortgage Loan rates.  It is still such a volatile market today and investors are trying to get ahead of the next buying and selling trends.  Thank god I do not have to be the person selling and buying bonds it can be a real tough industry to be a part off.  Investors, as they try to get that upper hand, tend to over react to market news very quickly.  Today we may have seen a little over reaction which has caused Colorado Home Mortgage Loan Lenders to do the same.  This is the biggest reason we have seen increases in Colorado Home Mortgage Loan rates so far today.  It will take poor performing economic reports to bring things back in line and as I look at the economic reports forecasted in the next 3 days we will see plenty of opportunity to bring the market back.  Colorado Home Mortgage Loan rates are priced much higher today then what was seen Thursday and Friday of last week.  Those of you that Locked your Colorado Home Mortgage Loan rate when the Lock recommendation was in place, good job you can breath easy and know you have Locked in a good rate.  Those of you that took the risk to ride out a better rate are natural gamblers (I like that) and should now just hold tight on the FLOAT recommendation.  We may see Colorado Home Mortgage Loan rates continue to rise this week if the data continues to come in better then expected, however I do believe we will see rates drop down again in the weeks to come.  We are seeing bits and pieces of data indicating that we are on our way up, but consumer sentiment and consumer confidence indicates consumers buying tendencies.  With those reports coming in lower and lower every month I can’t help but to believe that consumer spending is down, which is basically the core component in our economy.  If we do not have money circulating through the economy in the volumes we are accustom to, it is hard to show any sustainable future growth prospects.  It is only when people begin to react positively to the economy that true recovery will be felt.

Please check out www.coloradohomemortgageloan.net/news for more info and call me with any of your Colorado Home Mortgage Loan questions.

Daniel    

Colorado Home Mortgage Loan rates had some early morning volatility as the Producers Price Index data came in.  The PPI report is split into two categories and will be explained in full detail at www.coloradohomemortgageloan.net/news. Today, on this site, I will simply give you the basics.  The Report shows inflationary pressures on the production side.  Obviously, when it costs more to produce an item, the price for the item, has to be increased to cover the difference.  The increase in cost over time is what is known as inflation.  Inflation will have a sever affect on Colorado Home Mortgage Loan rates.  The PPI report came in below expectation for increases in production costs over all, but it came in higher then expectation when energy and food consumption data were added back in.  Long story short the mixed data should have had Colorado Home Mortgage Loan rates holding itself at its current levels. 

The data called for a calm day in the Mortgage Backed Securities market, but the reality of what played out in the market created quite a show for Colorado Home Mortgage Loan rates.  The Economic data set the ground work for another lemming type movement, as one investor after another began bidding on Mortgage Backed Securities.  Each investor thinking the other new something they did not.  Bond prices shot up about 25 basis points in about 30 minutes and about 60 basis points by the end of the day.  Colorado Home Mortgage Loan rates should see slight improvements, but not enough to get us to the 5.625% rate.  LOCKING remains the recommendation for now however if the mood in the economy changes we may have to set a new Locking floor around the 5.5% range.  This has not happen yet, but I am beginning to think that it will be a possibility. 

Colorado Home Mortgage Loan rates have moved up and down about .5% in the last 6 months.  Most of the data in recent weeks has investors believing that our economic troubles may be over.  In fact the recent stock market jumps have shown a bullish approach by investors.  This approach has drained funds out of the Mortgage Backed Securities market in order to finance these transactions.  Investors are reacting as if we are in a turnaround period.  Today the market lost considerable ground and recent economic news has, at least for today, lead investors back to using conservative strategies to invest.  Conservative strategies leads to better then expected gains in the Mortgage Backed Securities market.  As a result Colorado Home Mortgage Loan rates will trend lower today and 1^st thing tomorrow morning.  I stated this before, but LOCKING will remain my recommendation as long as you can get 5.75% or better. 

It is strange how the market has reacted over the last year.  Most of the reactions made in the market so far have originated from economic predictions made by experts.  Experts like weathermen have the knowledge to predict, but at best, it is an educated guess.  It’s hard not to be influenced by the trend of the day when so many experts are giving their opinions on the subject matter. The direction experts are taking on the current economic situation is that we may be in store for some tough times ahead.  Colorado Home Mortgage Loan rates will be positively influenced by tough economic times.  The question we need to answer right now is what direction will the economy take over the next 6 months?  We have had a tough year and the storm will be something to remember for a long time.  Are we in the Eye of the Hurricane and will the storm continue?  It’s too soon to tell just yet, but the signs are pointing towards even tougher times ahead. 

GDP continues to report low, but not low enough to indicate a recession.  I believe that a recession is part of the normal economic process.  Historically we go through short periods of time where the economy actually shrinks.  We call this time a recession.  The economic reports keep stating that we are just above what would be called a recession, but I believe that the data is slightly biased.  I also believe that we still have a ways to go before we begin to see change.  I can go on and on with why I believe this but will instead leave the phone line open to your questions.  The tough economic turmoil does make predicting Colorado Home Mortgage Loan rates a little easier to predict and I will continue to give you the feedback you need to make the right Colorado Home Mortgage Loan rate decisions.

Daniel

A real rollercoaster ride was experienced in the market today.  Colorado Home Mortgage rates started the day off great, coming in line with our Lock recommendations set earlier in the week.  1st thing in the Morning, I went into our pipeline and focused on locking loans for clients looking to close over the next week or So.  We saw a lot of things impact the market, but you can read about that at www.coloradomortgagebanking.com/news.  Right now we are maintaining a FLOAT recommendation and we expect rates to fall tomorrow as unemployment is announced.  All of the Job indicators over the last three weeks show that the unemployment rate should come in high.  This higher unemployment rate will cause mortgage backed securities to gain momentum in its pricing sometime tomorrow.  In return this should send Colorado Home Mortgage rates back down.  We are hoping to get the same rates we saw earlier today.  The Mortgage Backed Securities did finish the day better then where the market closed yesterday.  This tells me that rates should have been slightly better today then yesterday, but this is not the case.  Instead the rates today finished worse then yesterday meaning that the bank currently holds the rate at a price point that indicates extreme caution.  We believe this took place to protect the investor from any market risk experienced earlier in the day.  Basically they are gun shy from having to display any rates that might produce less the favorable profitability positions in the event of a major sell off which investors witnessed today.  This will be adjusted tomorrow and Colorado Home Mortgage Rates will open the market better tomorrow making it a must float situation ending today.  Stay tuned and call me with any Colorado Home Mortgage questions you might have.

We saw some crazy things happen in the Mortgage Backed Securities market today.  Things appeared to start of great for Colorado Home Mortgage Loan rates and within 15 minutes we saw rates go from good to down right ugly.  Luckily I was able to lock a couple of people today that benefited from this mornings opening Colorado Home Mortgage Loan rate.  Once one lemming (investors) jumped off the cliff they all jumped off the cliff.  With in about 30 minutes Mortgage Backed Securities took a nose dive.  The only thing I was able to see that may have been the cause of this is the increased value of the dollar overseas.  This launched a buying frenzy in the stock market and in return reducing the demand in the Mortgage Backed Securities market.  Simply put people were not buying.  This coupled with a sudden drop in securities lead investors to believe that something was up and in return a number of investors sold.  Lemmings controlling other Lemmings.  Its sometimes amazes me at how reactive the market is.  Of course Colorado Home Mortgage Loan rates jumped up today as a result.

Colorado Home Mortgage Loan rates should have been impacted solely on the economic data provided today.  Our one inflationary report did come in higher, but it was so minimal that I actually believe it to be a victory.  Especially with the price of oil up where it is.  I was so happy to see Exxon Mobil post another record breaking profit margin in the 1Q 2008.  I realize that the previous 4 record breaking quarters were not enough and that they actually provide a superior service worth the 10.8 billion dollar increase in profits.  (In case you were not aware I am being Sarcastic)  I am all for free markets and I will continue to push policy out of the market, but can someone step up to the plate and provide some competition.  Exxon has proved that it entering the business can be profitable.  Colorado Home Mortgage Loan rates will continue to find itself struggling to make any real head way as long as inflation is a concern.  Inflation will be a concern as long as oil remains were it is at. 

Inflationary numbers did come in line despite the increase in oil.  This is probably due to the fact that as a society we are limiting our spending.  Colorado Home Mortgage Loan rates were moderately influenced by this data, but were heavily influenced by the jobless claim and the Job cuts report which both came in much worse then expected.  Now this is significant because of the incredibly low expectations set in these categories by investor expectations.  It was great news for the Mortgage Backed Securities market and it actually had us down to 5.5% for a Colorado Home Mortgage Loan rate.  I did lock a couple of people at that 5.5% today, but the rate only stuck around for about 15 minutes before sky rocketing out of the range.  We already explained why (lemmings).  All the information today indicates that rates should have stayed at the low levels seen this morning and instead we had investors put emotion in trading and in return they screwed up our market position.  Luckily even lemmings have to get it right.  We should see a couple more reports coming out tomorrow, one in particular to watch for will be unemployment rate.  Judging from the Jobless claims unemployment rate should come in high, which will be good for Colorado Home Mortgage Loan rates.  We will see that first thing tomorrow, and if I was unable to lock you today, tomorrow might be another lock day.  Fridays typically concern me, but this early in the month and the amount of economic reporting coming out, Friday should prove to be a very volatile day.  FLOAT remains my Colorado Home Mortgage Loan recommendation, but it is an 18 hour FLOAT recommendation.  I would encourage you that if you are reading this blog and have not locked in your rate that the first call you make tomorrow is to me.  We may have to act first thing tomorrow and we may need to LOCK you in fast.  Colorado Home Mortgage Loan rates are expected to drop, and Mortgage Backed Securities market should see some improvement first thing in the morning.  This means that Colorado Home Mortgage Loan rates will open the market lower and we may see some increases through the day if the economic data being released indicate anything better then expected.  Stay tuned and contact me with your Colorado Home Mortgage Loan questions.

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.

The last 4 or 5 days have kept me on edge in anticipation of what was to be reported in the inflationary numbers category. Colorado Home Mortgage Loan rates have reacted negatively so far.  Investors tend to over react mainly to avoid holding on to the short end of the stick if the data comes in unfavorable to what ever position they have taken in the market.  Consumer Price Index reported this morning and the reports were right in line with expectation.  Though many investors consider the data to be unfavorable the data was already priced into the market.  We should see some rebounding in the Mortgage Backed Securities market over the next day or so.  Colorado Mortgage Loan rates should make up some of the losses felt yesterday, however we probably will not recover all the losses until sometime early next week.  We will need a couple more economic reports to come in with negative economic forecasts for that to happen.  Colorado Home Mortgage Loan rates should see about .125% to .25% improvement in rates by the end of the week.  This should make FLOATING a good risk.  Stay tunned and see if the market has any pricing alerts.  Until then Call me with any questions.  Finally the industrial numbers came in and the reports did indicate that we expereinced a mild amount of growth which is off from investor predictions. Normally this would be bad news for Colorado Home Mortgage Loan rates, but we also had the housing starts report come in and that came in at a 17 year low.  All in all we had a number of reports impacting Colorado Home Mortgage Loan rates however the trend is showing improvements for today which will hopefully carry us through the end of the week. 

I did take another quick glance at the Mortgage Backed Securities markets and so far today interest rates are remaining flat, however this may be due to the stock market increases seen so far.  Nothing in the reports show anything that should put up any concerns, but as usual stay tuned.  God Bless:-)  

Daniel

Colorado Home Mortgage Loan alert issued.  Mortgage Backed Securities are loosing ground today, more then likely do to anticipated inflation reports.  Colorado Home Mortgage Loan rates are worse by about .25%.  This will likely be regained if CPI and PPI numbers come in line tomorrow and Wednesday.  Our first report is do out tomorrow Producers Price index should it come in as expected will allow us to gain the ground lost in the Colorado Home Mortgage Loan market today.