ISM Report comes in higher then expected.
Colorado Home Mortgage rates are not looking good for anyone looking to lock right away. The ISM report did come out and it appears that the data came in slightly above expectations. This report gives monthly data to show whether production is up or down in the manufacturing sector. When production is up, the economic forecast will be positive. Positive economic forecasts tend to be negative for Colorado Home Mortgage rates. The data released today on the ISM reports were just a bit better then expected. This normally by itself would not create the Colorado Home Mortgage rate increases we are seeing this morning. The cause of today’s rate increase was, the unexpected announcement made by the Union Bank of Switzerland (UBS). UBS stated that they would raise more capital by offering additional investment opportunities to the market. Colorado Home Mortgage rates will definitely take a hit today on this news. Investors will be pulling money out of the MBS market and putting it into the stock market. We expect to see some impressive gains in the stock market as a result of this new information. Don’t be to discouraged, we do have some encouraging Colorado Home Mortgage rates news coming out this week. Economic data will continue to come in throughout the week, these numbers are forecasted to come in low, which should help us rebound from today’s interest rate increases. The one report to watch will be the employment numbers due out at the end of the week. The employment figures will have some strong impacts on what rates will do going into next week. Though the economy would like to see employment figures come back high, we believe that the trend will continue to see bad economic news finding its way back into the market. If you have not Locked your Colorado Home Mortgage loan at this time, then we will probably have a bumpy ride for the next few days. Finally another problem to recognize is, that investors have been overly optimistic in their economic data predictions, and as a result have been scrutinized in the market. Their portfolios have performed poorly due to incorrect forecasts. These investors have wised up and have begun to forecasts economic data that appears to be more in line with what the market is doing. Because of this, a false sense of confidence currently lingers in the market. As soon as they realize that even though they are now getting the forecasts on economic data correct, the news is still bad. In the long term that should result in rates falling back down. Its hard to tell people to float when rates will move upward over the next day or so, but today the market just did not respond well for Colorado Home Mortgage rates. This said, we are hoping for some of the over reaction captured in the market today to tapper off in the next day or so. We are all in for a bumpy ride, but expect to see rates come back down towards the end of the week. The real concern right now will be how high Colorado Home Mortgage rates will jump before coming back in line.
Daniel
Tags: Colorado Home Mortgage, Economic, investors, Rates
April 1st, 2008 at 2:55 pm
[…] News, Tips and Information About Mortgages - Fusion Financial - Denver, Colorado wrote an interesting post today onHere’s a quick excerptISM Report comes in higher then expected. April 1st, 2008 Colorado Home Mortgage rates are not looking good for anyone looking to lock right away. The ISM report did come out and it appears that the data came in slightly above expectations. This report gives monthly data to show whether production is up or down in the manufacturing sector. When production is up, the economic forecast will be positive. Positive economic forecasts tend to be negative for Colorado Home Mortgage rates. The d […]