Colorado Home Mortgage Banking

I guess my philosophy on never locking on a Friday has been pushed right out the Door.  Colorado Home Mortgage Loan rates should see improvements today signalling the third straight Friday LOCK recommendation.  Just when I think I have everything figured out I am reminded that like everyone else in the market I am reactive.  Consumer Sentiment is a measurement used to monitor consumers feelings on how the economy is moving.  A low Sentiment indicates fear and concern about the current economic situation.  When Consumer Sentiment is high the exact opposite is felt.  What does this mean for investors? How does this impact Colorado Home Mortgage Loan rates?  Simple, when people feel the economy is moving in the right direction they are less likely to save and more likely to spend.  Investors tend to move funds out of safe investments like Mortgage Backed Securities and into high risk investments.  The opposite is true when Consumer Sentiment is low.  Low Consumer Sentiment drives up the demand for Mortgage Backed Securities and in return drives up the price.  The inverse relationship between interest rates and prices can only mean Colorado Home Mortgage Loan rates will drop.  I am implementing a LOCK recommendation for today, especially if we have a price ALERT for the better later this afternoon.  Next week may be a tough week for rates.  We have a variety of inflationary reports coming out and I have stated many times before that inflation news tends to be the biggest mover for Colorado Home Mortgage Loan rates.  The preliminary reports so far indicate that we have inflationary pressures, but that should not be a surprise.  We will probably see some increases in pricing come Monday just out of anticipation of Tuesday and Wednesday inflationary reports.  If you are a risk taker and believe that the numbers will be as expected or lower, then you will see rates drop nicely by Thursday.  If not the increases seen in Colorado Home Mortgage Loan rates next week will be out right uncomfortable.  I will go out on my own and make a risky prediction, I believe inflation will be in line with expectations.  The reason why I believe this (Remember it is simply my opinion) is that much of the inflationary numbers being calculated comes from energy prices and that alone does have some negative impacts, however, with the economy moving as slow as it has overall pricing has not increased.  Heck what are homes doing (different indicator but you get the point)  People drive prices up through demand and right now with Consumer Sentiment as low as it is do you think people are buying or saving for a rainy day.  If people are saving then demand is low and if demand is low what happens to prices????  I will still leave the LOCK recommendation in place today on Colorado Home Mortgage Loans, but if you want to let it ride next week may prove to be a good week.   

Tags: , Colorado home mortgage loan, consumer sentiment, Rates

This entry was posted on Friday, April 11th, 2008 at 9:33 am and is filed under Colorado home mortgage loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.