Colorado Online Mortgage
Lenders continue to leave Colorado Online Mortgage companies in a state of confusion as it relates to rates. When you look at the spread between the 10 year bond and the 5.5% coupon bond all indication state that long term rates should come down to decrease the spread between these tow bonds. Colorado Online Mortgage rates 3 years ago with the same spread would have been in the low 5% range, instead investors trading on longer term rates remain overly cautious maybe too cautious. As your Colorado Online Mortgage provider we should continue to monitor that. The spread between these two investment have had a large spread for awhile about 9 months now and should eventually make Colorado Online Mortgage rates better in time. In the mean time we continue to look at economic data as it is reported. March 27th will give us the GDP numbers and March 28th should give us the PCE, (Personal Consumption Expenditures) simply put is Cost of living. This number tends to be more accurate then the normal Cost of Living numbers, because it allows for substitutes like if the price of beef goes way high it calculates the cost of chicken. How this report with GDP (Gross Demestic Product) numbers impact Colorado Online Mortgage rates is that they both measure the progression and the stability of the economy. If the news is positive then rates will go up if it is negative it will go down. Even bigger Colorado Online Mortgage rate pressure comes in the fact that both reports show a strong indication on what inflationary numbers are and the pressure that inflation is having on the economy. If you have followed my blog at all you will know by now that Colorado Online Mortgage programs are drastically impacted by inflation. If you look at historical rates all the way back to the 50’s you will see that rates escalated most when inflation was high. If the Cost of living goes up and our Gross domestic product numbers are strong this is a sure sign that inflation numbers will be an issue and you can expect Colorado Online Mortgage rates to go up. The up side to this as it relates to rates is that if the news comes back negative then rates will get better and based on the spread between the 10 year bond and the 5.5% coupon bond we may see rates drop to some of the lows we had 2 weeks ago. I still believe that the risk does not out weigh the reward, but if you don’t lock tomorrow then my recommendation is to ride it out until after the reports come out. The reason for this is that investors will already begin to price the fear that inflation is inevitable and like today we will see rates increase. If rates drop tomorrow for some reason then Locking will pay off, I expect rates to continue to increase as the week progresses and only bad economic news coverage by the media will allow rates to drop. Depending on what preliminary information comes out locking is still a good choice. The reason I make the Colorado Online Mortgage Lock recommendation is simple, by Wednesday investors will over react to the possiblity that rates will get worse based on Thrusday and Friday economic numbers and lonly bad economic news on Thrusday will bring them back in line. If the economic news is good on Thursday rates will probably stay the same as Wednesday because the risk has already been priced into the Colorado Online Mortgage rate and if Friday brings the same type of news expect rates to increase again by Monday and Tuesday of next week. In Short as your Colorado Online Mortgage provider my recommendation is to lock Tomorrow if you have a closing in the short term 2 weeks or so, to take any risk out of rates going up if not and you want to gamble then the risk may pay off, but I am telling my clients to be cautious of this as the first economic report of the week (New Home Sales) have already indicated that the economic news may be good hence increasing rates. Call me if you have questions I babbled quite bit on todays Colorado Online Mortgage blog. You can also check out my other blog site www.coloradohomemortgageloan.net. Best of luck and God bless
