Colorado Home Mortgage Banking

Colorado Home Mortgage rates are heavily influenced by the economic data released on a regular basis.  The data released by a variety of reporting agencies indicate the direction and current status the economy is in.  These reports are not released everyday and from time to time we actually have a 3 or 4 day lull.  Colorado Home Mortgage rates have a hard time reacting to the lack of data, so in times of light reporting, Investors for Mortgage Backed Securities look to the Headlines for market moving information.  Colorado Home Mortgage rates will be impacted by financial information coming from the stock market.  This information will be scrutinized by investors almost as much as the economic data itself.  Before I get into the headlines, Colorado Home Mortgage rates today saw an improvement from late last week.  We will be keeping our FLOAT recommendation at least for now.  So far everything in the MBS market is indicating improvements,  we may even see a mid day PRICE ALERT: for the better.  I have said many times that investors tend to over react and I believe that this took place last week.  Hopefully we did not have anyone locking in last week.  Those that waited will more then likely see thier risks pay off in lower Colorado Home Mortgage rates.  We will need to stay tuned to April 24th.  We will have the durable goods report coming out and though this report in itself does not make a big impact on the market, it will make its mark.  Colorado Home Mortgage rates will feel the impact because of the lack of data currently seen in the market.  Durable goods will be the 1st big economic report in 7 days and Mortgage Backed Securities will certainly react to the data.  In the mean time here are some of the headlines currently making its way around the market:

Bank of America reported a Profit decline of 77%.  This Profit decline came in credit losses and write downs.  Normally this would be a good sign for Colorado Home Mortgage rates, but Bank of America represents a big part of the mortgage business, and confidence will be low.  Colorado Home Mortgage rates will react neutral overall to this news.  Oil continues to trade at its highest price point ever.  This price point causes some concern for Mortgage Backed Securities, because it signals bad inflationary pressures.  These inflationary pressures cause bonds to be devalued which in return causes Colorado Home Mortgage rates to rise. Finally, we are seeing more analyst and economist predicting that future GDP reports will show that we are heading into a recession “Wow that’s a surprise”  The number of experts reporting this data has increased over the last few months and these numbers represent a similar trend reported in the 2001 recession.  Colorado Home Mortgage rates will respond very well to recessionary pressures.  These pressures will come out in the economic data being reported.  We have our next GDP report on April 30^th.  April 30^th will be a big day and so far preliminary information indicates that the reporting will come in lower then expected, which in return will give Colorado Home Mortgage rates the help it needs.  So we are back to my initial recommendation which is to FLOAT your Colorado Home Mortgage rate for now.  Call me with questions, if you have more time to read go to www.coloradohomemortgageloan.net/news with more information.  

Tags: Colorado Home Mortgage, Economic data, Home Mortgage, Rates

This entry was posted on Monday, April 21st, 2008 at 7:32 am and is filed under Colorado Home Mortgage. 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.