Light day for Mortgage backed Securities: Colorado Home Loan rates will be in limbo much of today
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.
April 23rd, 2008 at 9:30 am
[…] admin wrote an interesting post today onHere’s a quick excerptToday 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 … […]