Colorado Home Mortgage Banking

Colorado Mortgage rates are taking a pounding in the market today.  We have been concerned about the inflationary numbers for some time.  CPI (Consumer Price Index) and Core CPI both came in a lot higher then what the consensus had anticipated.  This increased data on inflation has sent Colorado Mortgage Rates back on an uphill climb.  I am expecting to see Colorado Mortgage Rates to increase about .125% to .25% by close of business today.  That will put the LOCK rate at 6.25%.  CPI is used to gauge changes in inflation and Colorado Mortgage markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, Colorado Mortgage markets adjust interest rates to reflect those changes.  Investors require higher returns on fixed rate bonds in order to justify the risk of holding them long term.  This is why inflation impact Colorado Mortgage bonds negatively.

In tough economic down turns, there are several reasons why inflation will work its way into the system.  Businesses increase prices in order to off set volume issues. Oil prices have hit historically high trading levels, making shipping of goods more expensive.  The level of competition begins to deteriorate as competitors exit the market because they lack the resources to stay in business.  This creates temporary demand for limited resources, which normally yields higher prices.  Colorado Mortgage Rates do not respond well to these pressures and the increases in Colorado Mortgage Rates are inevitable.  So the question I present today is how high will Colorado Mortgage Rates go in the short term (about 2-5 days), Mid-term (8-21days), and long-term (30-60 days).   

The Short term picture is easy to predict for Today.  We will not have a good day for Colorado Mortgage Rates as investors react extremely negatively to poor inflationary news.  The reaction will be exaggerated and some of the losses will be made up during the week.  This being said I expect a .125% Colorado Mortgage Rate increase by the end of the week.  So you are not going to be penalized to bad for not LOCKING in last week, but it will be a bit higher for your Colorado Mortgage closing this week.

The Mid-term picture is the toughest Colorado Mortgage rate trend to predict.  It is heavily impacted by headlines and economic data and does not follow any conventional cyclical terms seen in the Colorado Mortgage Market through out the year.  I still believe that we are over priced in Colorado Mortgage Rates due to investor’s fears of the current financial markets.  This being said inflation will continue to be a heavily watched indicator and it will take a lot of headlines to impact Colorado Mortgage rates enough to come down.  The Headlines we are looking for will be corporate profit issues.  This will be a major topic over the course of the year and will be the biggest influencer combating inflationary caused Colorado Mortgage rate increases.  I don’t see anything this year to indicate that profits will show the gains necessary to increase Colorado Mortgage Rates.  In fact most of profits reported so far have been positive for Colorado Mortgage Rates.  I believe that we will have periods over the next 3 weeks that will allow us to lock between 5.875% and 6.00%.  When this happens I will implement immediate Colorado Mortgage rate lock recommendations. 

The Long-Term picture is a little easier to predict as Colorado Mortgage Rates tend to show cyclical phenomenon’s.  Colorado Mortgage Rates typically peak for the year during summer months when demand is high.  The opposite is true during the winter months.  I expect to see Colorado Mortgage Rates to eventually hit the 5.75% range before the year is done and 5,.875% in the next 60 days. You can easily see that the range for Colorado Mortgage interest rates for the next 60 days will be between 5.875% and 6.375%, about a .5% movement.  The real impact on interest rates will be minimal, and will trend upward for the most part.  It will be important to keep watch so that you can LOCK you loan at the right time.  This is why having a good Colorado Mortgage provider is so important. 

Let me show you the cost savings by going with the right Colorado Mortgage provider.  Let’s say that you are unaware of the market and lock your loan at the worst possible time costing you .5% more on your Colorado Mortgage rate.  If you borrow $200,000 you will be paying about $1000 more a year.  The cost of interest will decrease over time but you can expect that you’re over all cost for locking at the wrong time will be around $22,000 on a 30 year Colorado Mortgage.  I think that this is significant enough to make sure you are working with the right people.

I would love a chance to earn your business and the business of anyone you might know in need of a Colorado Mortgage Loan.  I will have an article about FHA Loans and the Power that they have on the market today.  FHA Colorado Mortgage programs have been bailing the financial markets out of trouble for years.  It is very evident that they are doing it again.  Check that article out at www.colordaohomemortgageloan.net/news

Have a great day, Daniel

Mortgage rates took a hit today leaving some of us wondering if rates will continue to go up.  For the 5th day in a row Mortgage rates increased slightly.  Rates are currently up .375% from Monday and will probably remain that way through tomorrow.  All week we have been saying that the Economic reports due out this week will speak volumes on how mortgage rates will react.  Investors have been pricing in certain expectation into the market and those expectations were confirmed today on a number of reports coming out.  Jobless claims, Corporate Profits, and GDP all came in as expected and investors reacted with confidence.  Investors worked quickly to begin searching for higher returns outside of the bond market creating a drop in Mortgage Backed Securities.  Though investors took the news positively, we should probably take another look at the economic reports posted today.  Jobless claims, Corporate Profits, and GDP all came in lower then the previous quarters and even scarier came in right in line with the same numbers we faced during our 2001 recession.  Why investors are so confident, makes no sense to me.  We are experiencing economic data similar to economic data’s reported during our last two recessionary times.  Mortgage rates should be reacting quite well, but so far that is not the case.  Another report used to measure pressure on inflation is the Personal Consumption Expenditure report which came in low, 20% lower then expected.  The signs all point to mortgage interest rate decreases, but like everything else in this world nothing is certain.  What I am sure of is that typically I do not lock on Friday’s due to lack of activity.  Lets keep the FLOAT recommendation alive until early next week, but lets use caution, we may have to just bite the bullet and lock, we don’t want to have rates moving up like they did 6 weeks ago before making a locking decision.  Good luck and God Bless.

Daniel

Today is the first official blog and as a Colorado Home Mortgage provider I hope that you will find the material as enjoyable to read as it is useful.  Several of my current clients have been getting the mortgage updates directly emailed to them.  I will begin to upload a majority of the Colorado Home Mortgage content right to my site.  Over the Last week or so we have seen Colorado Home Mortgage rates drop due to continued activities in the market.  Last weeks CPI (consumer price index) showed us that inflation has not gotten out of control, which helped Colorado Home Mortgage rates hit this years all time lows.  Today we are starting to project what the Federal Reserve will do to short term interest rates to help stimulate the economy.  We are forecasting a drop of 1.0% in the Federal funds rate which will again drive Colorado Home Mortgage rates down.  Typically we see an increase in interest rates immediately following a Federal Funds rate drop, but in todays Mortgage Backed Securities market investors have already anticipated the decrease and these bonds are seeing their pricing go up.  Remember their is an inverse relationship between Colorado Home Mortgage rates and the price of Mortgage Backed Securities.  As MBS increase Colorado Home Mortgage Rates decrease.  Look ahead in the week to see if the inflationary numbers continue to be exagerated if so we may see rates move up and it may be time to lock in your current Colorado Home Mortgage Rate.  Recommendation for today Float

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