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.

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.  

It will be an interesting day in the Mortgage Backed Securities Market.  Colorado Home Mortgage rates will certainly go up today.  The question will be how much will they go up? and What should we expect from tomorrows inflationary reports?  If you take look at the numbers, Core PPI came in right as expected which is producers costs excluding the volatile Food and Energy component.  This by itself would have actually been good for Colorado Home Mortgage rates.  The negative influence right now in the Mortgage Backed Securities market comes from PPI numbers that have food and energy included.  It is no surprise that this came in negative.  The problem is that it came in much higher then expected sending  negative inflationary signs though the market.  Colorado Home Mortgage rates will certainly go up.  This will be a tough week for those that don’t understand to forces that move the market.  People may want to LOCK in fear that rates will not stop going up.  Today will more then likely be a preview of whats to come for tomorrow.  It will be a tough couple of days.  I am still recommending a FLOAT at this point.  It is a risk, but Colorado Home Mortgage rates this week may have you locking at a high point and that is never my intention for anyone.  Remember that 1/2% on a $200,000 loan translates to about $75 more a month and that is what you will be putting on the line if you Float your Colorado Home Mortgage rate and you end up locking at a higher rate.  At this point rates should go down again when reports start showing what the economy is doing as a whole.  Inflation was expected to be higher today, but the light at the end of the tunnel through all this was that inflation appeared to be right in line if you exclude energy.  I believe that rates should drop again towards the end of the week, but stay tuned and if you need to lock let me know and I will get you locked in.  Have a great day.

Retail sales numbers were released today and for the moment it appears that it has not impacted Colorado Home Mortgage rates for today.  The Retail Sales Index measures the total receipts of retail and food sales. Retail sales include durable and non-durable merchandise sold and services and taxes incidental to the sale of merchandise. Sales are often viewed ex-autos, as auto sales can move sharply from month-to-month. It is also important to keep an eye on the gas and food components, where changes in sales are often a result of price changes rather than shifting consumer demand.  So how does this impact Mortgage Backed Securities, and more importantly Colorado Home Mortgage Rates?  Simple, if and when the economy reports negative news, Colorado Home Mortgage Rates drop and Mortgage Backed Securities increases. 

Looking at the Market so far today Colorado Home Mortgage Rates have moved up and down slightly over the last two hours, but have not made any major movements.  In fact Colorado Home Mortgage Rates should have started the day a little better because of where the market closed on Friday.  The real show stopper this week will be the two inflationary reports due out Tuesday and Wednesday.  This report will report on what inflation rates were for the month of March.  Its hard to give an unbiased opinion on what I think the inflationary numbers will be, because I have been reading nothing but negative press on what experts expect.  Colorado Home Mortgage rates will most definitely be impacted one way or another in the next two days, the question is which way?  I believe that inflation will report right in line with expectations.  This will be influenced heavily by the cost of energy.  If you are a risk taker FLOATING will pay off, if you just want to sleep well tonight, then LOCKING will be recommended today.  I am implementing a high risk FLOAT recommendation.  Colorado Home Mortgage Rates will see some nice improvements if and when inflationary numbers report in line.  Now keep in mind we have two inflation reports to be concerned about this week and even if the numbers come in good for Colorado Home Mortgage rates tomorrow, the market will not react until Wednesdays reports.  If you want to know the rational for why I believe inflationary numbers will report in line with expectations read my blog on inflation posted a few days ago.  Colorado Home Mortgage rates should remain in line today in anticipation of whats to come.  I will keep you posted.  God bless and have a wonderful day:-)

Colorado Home Mortgage rates slipped a little today as compared to Friday’s lows.  Investor used a conservative pricing approach when Colorado Home Mortgage rates were released today.  TPG offered WAMU a $5 Billion dollar bail out to help WAMU’s concerns of a take over by JP Morgan.  This sent stocks up first thing this morning, and had Mortgage Backed Securities looking less then ideal.  Colorado Home Mortgage rates reflected this change first thing this morning and has remained at that level through out much of today.  No major economic reports to speak of, limiting the activity in the market.  When volume is low pricing remains stagnant.  Rates should look very similar going into tomorrow.  At last glance Mortgage Backed Securities appeared to be on the rise.  If we have any disappointing news in the next 24 hours rates should move back to Friday’s lows.  If we have favorable news we probably will not see to much of an increase due to the conservative approach already being taken by investors.  FLOATING today for your Colorado Home Mortgage loan will not be a bad risk,  if you are closing in the next week or so LOCKING may take the risk out of the investment. 

Two economic reports came out today both coming in worse then expected.  Colorado Home Mortgage rates should see some nice improvements today.  The much anticipated Unemployment figures are out and the numbers were higher then expected.  I have been saying for days that a couple of bad economic news reports should finally be the wake up call needed to push investors back into Mortgage Backed Securities.  We are seeing a feeding frenzy this morning and Colorado Home Mortgage Rates should be better by .25% this morning.  I normally don’t make LOCK recommendations on a Friday, but heck if investors over react we may want to lock in today.  I will keep you posted on when Colorado Home Mortgage rate sheets are released.  Unemployment came in at 5.1% the highest number in 5 years for any given quarter.   The Employment Situation report released today sent more negative information into the market as it relates to overall employment data.  These two reports combined, will definitely be market movers and will send Colorado Home Mortgage rates down.  If you waited to lock, then your bet paid off.  How far Colorado Home Mortgage rates will drop is the main question today.  Don’t hold out to long LOCKING in a rate will only be guaranteed when you actually LOCK.  I am putting up a LOCK recommendation for anyone being quoted a full .25% lower then yesterday, however floating may not be a bad risk for those who want to wait until Monday or Tuesday of next week.  If we continue to get bad economic data early next week, we may see some impressive drops with interest rates:-) Stay tuned and thank you for having trust in us.  Just as I was hitting the button to post this blog rates came out and as expected .25% lower already.

Daniel

Colorado Home Mortgage rates are not looking good for anyone looking to lock right away.  The ISM report did come out and it appears that the data came in slightly above expectations.  This report gives monthly data to show whether production is up or down in the manufacturing sector.  When production is up, the economic forecast will be positive.  Positive economic forecasts tend to be negative for Colorado Home Mortgage rates.  The data released today on the ISM reports were just a bit better then expected.  This normally by itself would not create the Colorado Home Mortgage rate increases we are seeing this morning.  The cause of today’s rate increase was, the unexpected announcement made by the Union Bank of Switzerland (UBS).  UBS stated that they would raise more capital by offering additional investment opportunities to the market.  Colorado Home Mortgage rates will definitely take a hit today on this news.  Investors will be pulling money out of the MBS market and putting it into the stock market.  We expect to see some impressive gains in the stock market as a result of this new information.  Don’t be to discouraged, we do have some encouraging Colorado Home Mortgage rates news coming out this week.   Economic data will continue to come in throughout the week, these numbers are forecasted to come in low, which should help us rebound from today’s interest rate increases.  The one report to watch will be the employment numbers due out at the end of the week.  The employment figures will have some strong impacts on what rates will do going into next week.  Though the economy would like to see employment figures come back high, we believe that the trend will continue to see bad economic news finding its way back into the market.  If you have not Locked your Colorado Home Mortgage loan at this time, then we will probably have a bumpy ride for the next few days.  Finally another problem to recognize is, that investors have been overly optimistic in their economic data predictions, and as a result have been scrutinized in the market.  Their portfolios have performed poorly due to incorrect forecasts.  These investors have wised up and have begun to forecasts economic data that appears to be more in line with what the market is doing.  Because of this, a false sense of confidence currently lingers in the market.  As soon as they realize that even though they are now getting the forecasts on economic data correct, the news is still bad.  In the long term that should result in rates falling back down.  Its hard to tell people to float when rates will move upward over the next day or so, but today the market just did not respond well for Colorado Home Mortgage rates.  This said, we are hoping for some of the over reaction captured in the market today to tapper off in the next day or so.  We are all in for a bumpy ride, but expect to see rates come back down towards the end of the week.  The real concern right now will be how high Colorado Home Mortgage rates will jump before coming back in line.  

Daniel 

Colorado home mortgage rates will be impacted by a variety of economic reports currently being posted. The first report the Jobless claims were released early this morning and showed a greater then expected job loss number. This number typically moves Colorado home mortgage rates down when the news is worse. Coloard home mortgage programs will also be influenced by the LEI report which is a leading economic indicator and typically shows what direction the economy is heading. A good report will be negative to Colorado Home mortgage rates and a bad report obviously will be better for Colorado home mortgage programs. I just looked up the information on the LEI and it came in worse then expected. currently the stock market has increased over 100 points, but we will probably see some of those gains lost as investors tend to become a lot more conservative with bad economic news. We should see Colorado home mortgage rates remain some what better today and based on where rates are at it is still a LOCK recommendation. As we all know investors are incredibly unpredictable and if they feel risky and remain in the stock market then we may see Mortgage Backed Securities drop which will increase Colorado home mortgage rates. Today we should see rates remain the same but again I can’t express this enough rates are good sometime cashing in is a win win situation and I will keep my Colorado home mortgage LOCK recommendation in effect. I have 4 clients I will be locking today.

What a day for Colorado home mortgage rates.  Those that took advantage of the lock recommendation will enjoy some of the best Colorado Home Mortgage rates we have seen this year.  The Federal Reserve lowered short term interest rates by .75% which is lower then what most Colorado Home Mortgage lenders projected.  We should have seen Colorado Home Mortgage rates drop even further but investors can be irrational and a frenzy took place.  Colorado Home Mortgage rates jumped up early morning and continued with no end in sight.  I was able to lock 5 clients yesterday and 8 clients today and Yes Derek you just made it under the wire.  I had one investor who appeared to forget that the market was going crazy and left rates somewhat unchanged which benefited some of the late locks put in.  I would continue to monitor the market but the frenzy told us that inflation still tends to be a concern for Colorado Home Mortgage rates.  People seem to think when the Federal Reserve drops rates that long term rates improve, that could not be further from the truth, but in this case the market already projected a 1% decreases in the Ferederal Reserve funds rate and rates should not have dropped, we are humbled by how quickly things can change and need to be reminded that when the rate is right we need to Lock.  I have no idea what the market will do but if you have not locked yet we may want to float for a day or so, but be prepared for another Colorado Home Mortgage alert to Lock.  Good night and Good luck:-)