Colorado Home Mortgage Loan: Inflation keeps rates moving up
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
Tags: Colorado Home Mortgage, Colorado home mortgage loan, mortgage loan, Mortgage Rates
