Overnight selling has Colorado Home Loan rates starting the day higher then expected
Mortgage Backed Securities were sold off in mass numbers overnight in the foreign markets, sending today’s opening numbers right into the cellar. Colorado Home Loan rates started the morning off about .25% higher then yesterdays closing Colorado Home Loan rates. We are now seeing Colorado Home Loan rates hitting 6.0% which has me a bit concerned on where rates will finally cap at, before we begin to see some relief. Its getting harder and harder to tell people to floating especially since rates continue to rise. With that said we should keep one thing in mind, and that is as much as rates have gone up over the last 3 weeks rates still remain right around 6.0%. 6.0% Colorado Home Loan rates are still better then our 12 month peak points and continues to be a respectable rate. I don’t want to alarm anyone right now it just appears that the market is experiencing instability. With this instability investors are acting on fear that the Mortgage Backed Securities market will some how loose its current credibility. The fear should soon dissipate from Mortgage Backed Securities and confidence to buy will return as investors begin seeing losses within the equities markets. We need to remember that the market will respond accordingly to the economic data being released, even though we are not seeing it reflected in the price of Colorado Home Loan rates today. Historically Mortgage Backed Securities have had their movements primarily dictated by economic reports released through out the month. This does not appear to be the case now we what we are seeing in today’s market is the exception. We will get back to our old predictability soon, especially as we get more and more negative economic data. As expected, Consumer Sentiment came in at a 30 year low, hitting the lowest Consumer Sentiment reading since 1982. Consumer Confidence is expected to come in just as low, which will be the push we need to have Colorado Home Loan rates moving back into the right direction. What is disappointing about what we are seeing in the market is that these reports should have moved rates considerably lower today, but instead will only stop Colorado Home Loan rates from increasing. We should see the market find the stability it needs over the next week or so at which point we should see rates begin to fall. Stay tuned and call me with any of your Colorado Home Loan Rate questions.
Tags: Colorado home loan, Economic data, Rates
April 26th, 2008 at 5:04 am
[…] admin wrote an interesting post today onHere’s a quick excerptMortgage Backed Securities were sold off in mass numbers overnight in the foreign markets, sending today’s opening numbers right into the cellar. Colorado Home Loan rates started the morning off about .25% higher then yesterdays closing … […]