Colorado Home Mortgage Banking

Colorado Home Loan Rates took a hard hit on Friday.  If you had a chance to lock your loan on Wednesday or Thursday you would have done well for yourself.  Colorado Home Loan Rates had been dropping for most of the week and if you haven’t heard yet the market took some hard hits on Friday.  Colorado Home Loan Rates jumped up about .375% to .5% in a single day washing away much of the Colorado Home Loan Rate gains experienced earlier in the week.  The reason for such a drastic increase in Colorado Home Loan Rates came from two different banking institutions.  Freddie Mac and Fannie Mae are the biggest Home Loan providers in the country.  They were established by the government to warehouse mortgage loans that are bought and sold on the Mortgage Backed Securities market.  Both of these wholesale lending institutions have come under fire recently as more and more mortgages have gone into default.  Investors became very concerned that the MBS market would also come under fire as a result of the instability facing these companies.  Colorado Home Loan rates responded accordingly late Friday by increasing their Rates.

The increase in Colorado Home Loan rates may have been a bit exaggerated on Friday and so far the market is re-adjusting itself.  The re-adjusting should fair pretty good for Colorado Home Loan rates, so we are implementing a FLOAT recommendation until about 4:00pm Mountain Standard time.  It will be important to check in with me during the next 4 hours if you are looking to lock today.  Eventually fears for what PPI will indicate tomorrow will work its way into the Colorado Home Loan rate market.  When this happens the gains we are seeing so far will start to go away.  We will want to LOCK at the right time, which should be sometime this afternoon.  The reason for the double recommendation today is that we still have some concerns about the inflationary reports due to come out on Tuesday and Wednesday.  CPI and PPI are the biggest movers of Colorado Home Loan rates stemming from economic data.

Economists pay the most attention to the PPI’s for finished goods, intermediate goods and crude goods. The PPI’s measure inflation of prices on the producers’ end and often that inflation gets passed onto the consumer and CPI. Inflationary pressures seen in PPI can help predict future pressures on consumer products’ prices.  When inflation runs high the value of a fixed rate bond decreases.  The decrease in value requires a higher interest rate premium to sell the bond.  Future bonds will also require higher interest rate premiums to attract new demand, and as a result Colorado Home Loan Rates increases to accommodate this demand.  CPI is used to gauge changes in Consumer paid inflation and Colorado Home Loan markets tend to be extremely sensitive to unexpected changes to the reported numbers. As inflation and expectations of future inflation rates change, the markets adjust Colorado Home Loan interest rates to reflect those changes. The effect of these changes is seen across all markets, equities, bonds and mortgage backed securities.

The final piece of information to be aware of is the failure of Indy Mac the 3^rd largest banking institution to fail in U.S. history.  The financial crisis is still in full force and Colorado Home Loan lenders are very aware of these issues.  Lenders are tightening up on their qualifying measures and though Colorado Home Loan Rates appear to be low, qualifying for that Colorado Home Loan programs has never been tougher.  Most realtors and mortgage providers that have been in the business for some time have found it difficult to understand the magnitude of these changes.  If you are in this category please let me know and I will be happy to answer your Colorado Home Loan questions.  Getting back to Indy Mac, late last week they experienced the same run on the bank that several Savings and Loans institutions felt in the 1980’s as the market collapsed on similar economic pressures seen today.  The Federal Reserve has jumped in again to reaffirm that federal depository insurance will cover losses from this bank.  The scary thing on this is that they will only cover $100,000 for each depositor.  People will loose money from this collapse. The full impacts of the mortgage crisis will not be felt until sometime next summer.  So it is more important then ever to work with people who understand the market and who actively participate in the market in order for you to get the best Colorado Home Loan available.

Please give me a call and allow me a chance to earn your Colorado Home Loan business. I have also written an article today that answers the question facing many Americans “What should I do when my Colorado Home Loan Rates is set to adjust.”  You can view that article at www.coloradohomeloanmortgage.net/news

Have a Great dayJ Daniel

Colorado Home Loan Rates appear to be moving in the right direction today.  Pending home sales came in lower then expected which created some excitement in the Mortgage Backed Securities market.  So far we have seen some improvements in Colorado Home Loan Rates, but not enough to indicate a price improvement.  The good news is that Colorado Home Loan Rates will probably not have any increases on today’s headlines.  We implemented a LOCK recommendation yesterday, and we will maintain the LOCK recommendation today. 

This week will be a light week for economic data and it will not take much to send Colorado Home Loan Rates back up.  Investors are anticipating more bad news circling around unemployment, which means Thursdays Jobless Claims, should have some impacts on Colorado Home Loan Rates later this week.  Tomorrow we have no scheduled economic data to be released.  The Lack of data will force investors to monitor the equities market before making their buy/sell decisions for MBS. 

Ben Bernanke spoke in Virginia yesterday and he continued his tough talk about additional regulation in the mortgage lending markets.  His comments indicated that the shady practices used by lenders over the last few years, has been the biggest influencer in our current economic downturn.  He is proposing additional regulations on mortgage lenders to help improve the current performance of Mortgage Backed Securities.  Ben will present his recommendations to a senate sub-committee for review sometime next week.  Investors have not reacted negatively to the news and so far we have not seen any major impacts in the Colorado Home Loan markets.  Reform is needed and lenders do need additional regulation, but to what extent still needs to be debated. 

Colorado Home Loan Rates have always been impacted by risk.  Underwriters are the banks authority when assessing risk.  They are in charge of assessing what the risk is and whether the risk on the file should be considered for approval.  Colorado Home Loan Rates are influenced by the entire mortgage portfolio and the history of that mortgage portfolio.  In the past underwriters approved just about any Colorado Home Loan, which has drastically deteriorated the current performance of these mortgage portfolios. The result of loose lending practices has created a higher then normal risk premium being added to Colorado Home Loan Rates today.  Today underwriters are taking a tougher approach in approving Colorado Home Loan programs, which should return better performing portfolio’s in the future.  The risk on today’s loans is considerably lower then the risk premium being added to Colorado Home Loan Rates.  We are still paying for mistakes made over the last few years, and will not see the risk premium reduced for some time.  If the Federal Reserve implements additional restrictions and Colorado Home Loan Rates don’t improve, Lenders will ultimately reap the benefits in higher profit margins.  This is ok but eventually the savings should be passed back in the form of lower Colorado Home Loan Rates.

I am hoping that Lenders recognize the spread between Risk and current Colorado Home Loan Rates, but so far it appears that the spread is still fairly large.  In short you are paying more now because of the losses created by poor lending decisions 2 or 3 years ago.  We will not see any significant changes in the risk premiums added to Colorado Home Loan Rates until the portfolios perform better over time.  With all the restrictions currently put into place, we should see Colorado Home Loan Rates improve its risk premium over the next 12 to 18 months. 

Though the portfolio will improve its performance, it should be noted, that we have many other factors influencing the direction Colorado Home Loan Rates will go.  The biggest factor affecting Colorado Home Loan Rates is inflation.  This topic has been discussed in great detail here, but I want to remind you that it will be the biggest driver of Colorado Home Loan Rates over the next 6 months.  I have some real concerns about how much of an impact inflation will have and we have already begun to seen the impacts over the last 2 months.  The impacts have not come from actual inflationary reports, but from speculation of what is to come.  The real affect will be felt when economic reports begin to report the higher inflationary numbers.  Colorado Home Loan Rates are certainly expected to go up from its current levels.  We see some pockets of hope where Colorado Home Loan Rates drop or show some stability and that is the best time to LOCK.  We are experiencing that in the market right now, and should for the remainder of the week.  Next week on Tuesday and Wednesday, we will have our inflationary report numbers.   So if you can get into a good Colorado Home Loan Rate today, then LOCKING is a good idea.

Over the Last couple of months our inflationary numbers have been in line.  Most of that is not due to lower prices, but to lower spending.  Eventually people will spend again and prices at its current levels will create higher then expected inflationary pressure.  When this happens inflationary reports will come out high, which inevitably creates havoc on the Mortgage Backed Securities Market.  Colorado Home Loan Rates hate anything to do with inflation and rates will go up.   Next week if PPI or CPI comes in worse the expected, Colorado Home Loan Rates will climb.  Stay tuned to this site daily as updates are made on a regular basis. 

For your Colorado Home Loan decision it’s easy to find someone to help you, however it can be difficult to find someone who knows what they are talking about.  Please allow me a chance to work with your Colorado Home Loan; I have the knowledge to get you the best Colorado Home Loan available.  I have also written an interesting article about Brokers or Bankers at www.coloradohomemortgageloan.net/news let me know what you think.

Daniel     

Colorado Home Mortgage rates appear to be off to a rough start this morning.  The Mortgage Backed Securities market has lost some ground over the weekend and Colorado Home Mortgage rates are expected to be a bit higher today.  We implemented a lock recommendation last week and for those that locked your Colorado Home Mortgage rate it now appears that you made the right choice.  The market will be light this week which means the headlines will dictate the direction demanded on Colorado Home Mortgage rates.  Tomorrow we expect pending home sale figures to be reported and so far the consensus has indicated another decrease in home sales for the 2Q for 2008.  This is a drastic decreased expectation from what was reported last month.  If the report comes in better then expected Colorado Home Mortgage rates will jump up a bit.  Because there is such a huge difference in the Consensus and what was reported last I believe that the report will beat expectation.  So we will continue to hold up on our Lock recommendation.  Some Lenders may have put to much cushion on the Colorado Home Mortgage rate sheets in anticipation of a bad week.  Luckily we have access to all the lenders and we will ensure you do not get high with that Colorado Home Mortgage rate premium. 

The Pending Home Sales index measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes. Modeling for the new index looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years.  This is important for Colorado Home Mortgage rates because It is designed to be a leading indicator of housing activity. Greater housing sector activity indicates a stronger economy, which is generally negative for Colorado Home Mortgage markets.  We are expecting a -3% increase versus a 6.3% increase reported last time the report came out.  Because of the 10% gap from one month to the other and the fact that we are still in our selling season, I believe the report is a bit to pessimistic.  This will result in an increase of Colorado Home Mortgage rates by late afternoon tomorrow, if investors have not already priced that in today.   The only other reports to look for this week will be the trade deficit report and the consumer sentiment.  Both reports are expected to come in poorly. 

It is interesting that with the dismal outlook being portrayed in the market that Colorado Home Mortgage rates appear to be higher then they should.  I have talked about the economic conditions many times in previous blogs, but we need to remember that this is not new territory for the Colorado Home Mortgage market.  We have seen this before.  We are experiencing many pressures in the inflation category due to the oil price shock, and we are experiencing a bad economic turnaround.  Both these indicators took place in the late 1970’s and early 1980’s.  What makes this go around so much better is that our Federal Reserve members are better prepared to handle the economic stimulus needed to get us back on track.  If we did not have the current pressure from oil causing un-needed inflation fears in the market, we would probably see Colorado Home Mortgage rates in the low 5% range on the 30 year fixed.   However inflation is devaluing the bonds and investors are demanding a higher return to buy them.  This is the biggest reason we see Colorado Home Mortgage rates higher then they need to be. 

We can’t blame ourselves for the higher oil prices; it is simply demand that has caused oil to increase to its highest levels ever.  The demand for oil is not even a domestic issue it is a global issue.  We are experiencing inflationary pressures that are out of our control.  The pressure is a direct result of global demand not domestic demand.  So the only way we can combat the issues is to understand where the pressures are coming from. The U.S is no longer the market movers in the global market place.  Because we are not the market movers we need to work on understanding and forecasting based on the pressures experienced in global activities versus domestic activities.  Colorado Home Mortgage rates will probably not see the low 5% range for some time to come.  Instead we need to prepare ourselves for the up and down cycles that will result from the continued global demand.  Like the U.S. other countries like China will slow down demand as prices go up.  We need to identify the cycles demanded in the global market to understand what the pricing cycles that makes its way into the domestic bond markets.  Once that is identified, we can then begin to accurately predict Colorado Home Mortgage rate trends.  In the meantime I will continue to monitor both the domestic and global influencers that affect our bonds markets before making any real Lock/Float recommendation. 

Please contact me with your Colorado Home Mortgage questions.  I have also included a piece on foreclosures that you can read at www.coloradomortgagebanking.com/news.

Daniel

Colorado Home Loan rates will be improving a bit today as the stock market takes yet another hit for the day.  We have seen the equities market take about a 15% decrease in the last couple of weeks which would normally be great for Colorado Home Loan rates.  I stated a couple of days ago that we had a number of economic reports coming out which should impact Colorado Home Loan rates.  Consumer Sentiment, Core PCE, and Personal income reports all came out today.  I will discuss those reports and yesterdays reports at www.coloradohomemortgageloan.net/news right now just know that the economic data today was for the most part positive news for Mortgage Backed Securities.  When the price of Bonds goes up Colorado Home Loan rates tend to dropJ 

So the battle rages on with investors on which direction our economy is headed.  Investors are faced with a very difficult decision in their investment strategies.  If the Economy continues to spiral downward then equities will be a poor choice.  We are seeing that in the stock market right now.  Colorado Home Loan rates should have had huge improvements while the stock market dropped.  The improvements we should have seen were halted by the continued threat of inflation.  Inflation is the second obstacle facing investors today.  If investors invest in long-term fixed rate bonds, and inflation gets out of control, investors will loose value in their portfolios.  So the question is what should investors do.  If in fact investors choose fixed rate investments over equities, Colorado Home Loan rates will improve. 

In the short run it certainly appears that poor economic conditions remain a bigger concern then inflation.  The Federal Reserve continues to push its actions toward improving economic conditions, while talking about inflationary pressures.  This tactic is used to stimulate the economic activity, while trying to hold off inflationary pressures.  We are still facing some major obstacles in the next 18 months and will not be able to really account for the aftermath until a recovery in our financial system begins.  We can see the impacts of inconsistency in Colorado Home Loan rates already.  Based on our current Economic condition there is no reason why the 30 year fixed Colorado Home Loan rate should be any higher then 5.0% flat.  This is a huge difference from where we are at now.  We are pushing the envelop on anything below 6.25% for any Colorado Home Loan program.  Even though we are above the 6.00% range we believe that some relief is in store.

Colorado Home Loan rates should continue to see relief despite the current inflationary pressures seen in Oil.  Colorado Home Loan rates will improve, because the economic issues are out weighing the cost increases that contribute to inflation.  Though Colorado Home Loan rates will improve, they will not improve as much as they should.  $142 a barrel of oil, COME ON!!! Can anyone who promised to protect the American people from foreign threats not see that this is a threat to our financial system?  Of course not, we have a bunch of talkers in the senate that would rather debate each other to death versus actually doing something.  At least when the Republican Party had control of congress things got done, mind you it was not always the right decision, but at least something happened.  We have now experienced a two year downward turn since the democratic lead Senate took over and so far NOTHING has happened.  I guess as most of you can see I am a Republican, but I am also honest enough to know that there is good to both parties, regardless of your political affiliation you have, something needs to be done.  Colorado Home Loan rates will continue to be in a state of confusion until we fix some of the variables impacting our markets from abroad.  Colorado Home Loan rates like any other interest rate instrument would stimulate our economy back if in fact rates were low enough.  Inflation already has several momentum building influences when money supply becomes less expensive.  When we add the unsustainable cost increases of oil to our inflationary numbers, it becomes very difficult to combat economic issues.  The tools used by the Federal Reserve to help stimulate the economy are limited by the constant treat of inflation.  When inflation presents itself without Federal Reserve intervention we are limiting what can be done to help stimulate our Economy.  Oil needs to be address and it needs to be addressed now, otherwise we will be in this economic rut longer then we need to be.

Sorry about that tangent.  I do want to quickly express my appreciation for Ben Bernanke I have criticized him a bit in the past, but I believe he is doing all he can to help our economic systems.  He is faced with many difficult obstacles never seen in our economy before and so far he has done everything he can to ensure that our situation does not get any worse.  Regardless of what you think about President Bush, his economic stimulus package that gave Americans additional funds late April and May showed that at least he is willing to do something.  I am maintaining a FLOAT recommendation today and so far the MBS markets appear to be favoring Colorado Home Loan rates.  We have not seen any substantial decreases over the last few days, but we do not foresee any major reports that will drive Colorado Home Loan rates up.  Every time I watch Lender activity it appears that they are moving Colorado Home Loan rates up quickly and bringing them down slowly.  Right now we are seeing the momentum for Colorado Home Loan rates coming downward. 

Please give me a call about your Colorado Home Loan rates, and hopefully I did not offend anyone.  I really enjoy everyone’s perspective and can sometimes be opinionated.

God Bless and have a great weekend.

Daniel

Colorado Home Mortgage rates seem to be getting some relief today after the release of the Consumer Price index.  CPI measures real inflation, which has been the hot topic for Colorado Home Mortgage rates over the last 5 days.  Inflation fears have contributed about a .75% rate increase with Colorado Home Mortgage programs over the last week.  Colorado Home Mortgage rates have not been this high since August of last year, making the relief well over due.  It appears that the Mortgage Backed Securities market will trade higher today and over the weekend allowing some much needed relief in Colorado Home Mortgage rates.  How much relief will depend on how aggressive investors get, but the feeling right now is that the relief will come slowly.  We have one more inflationary report to be released for the month and that is Producer Price Index which will come out on Tuesday.  We will need to keep a close eye on PPI next week, if PPI reports in line with expectations, next week could be a good week for Colorado Home Mortgage rates.

Our biggest enemy right now was our best friend 6 months ago, and that is the Federal Reserve.  The Federal Reserve utilizes many techniques to move the market in the direction it chooses.  Colorado Home Mortgage rates are influenced by these actions.  The Federal Reserve has utilized a scare tactic over the last 10 days or so, by openly discussing serious concerns with inflation.  These speeches created some strong movement out of long term investments, which caused Colorado Home Mortgage rates to go up.  What investors now have to do is determine how much of the information being expressed by the Federal Reserve is fluff and how much is real.  Colorado Home Mortgage rates hate inflation and the most credible source for getting the information on inflation to us is the Federal Reserve.  So why question their intentions right?  Well the Federal Reserve is also responsible for lowering the risk of inflation.  By generating fear about inflation the Federal Reserve can slow down Economic progression.  This is one technique they use to reduce inflationary pressures.  I am not sure if that is the right approach, but it does work.  Tuesday will give investors the last piece of the puzzle for the month on inflation.  If Producers Price Index comes in as expected we should see next weeks Colorado Home Mortgage rates drop.

Colorado Home Mortgage rates are at a high point for the year, and it has become tougher and tougher to recommend a FLOAT or LOCK recommendation.  Based on today’s information and looking at where inflation came in at, I believe that FLOATING your loan is a good risk.  Investors need a little time to price back out of the safety zone currently seen in their Colorado Home Mortgage rates.  This means we have room to improve.  The economic news has also been good for Colorado Home Mortgage rates making a FLOAT recommendation that much easier to make.  Stay tuned for PPI that will come out on Tuesday.  We will be hoping that PPI reports at or below expectations.  We will give you the information as soon as we know.  In the mean time let me help you with your Colorado Home Mortgage questions and feel free to call me directly.  If you have time, check out www.coloradohomemortgageloan.net/news  I will be reporting on all the economic reports from today and their impacts.  All you really need to know though, is that the reports favored Colorado Home Mortgage Rate improvements and seem to be carrying enough momentum to get us through the weekend.  Until we write again have a safe and fun weekend.

Daniel 

Colorado Mortgage Rates are determined by the Mortgage Backed Securities market.  Most people refer to this market as the bond market.  The bond market competes with the equities market to attract demand from investors.  Colorado Mortgage Rates are determined by the demand shown in the bond market.  The relationship between Mortgage Backed Securities pricing and Colorado Mortgage Rates follow an inverse pattern.  The best way to look at the inverse relationship is to watch the price of bonds, when the price of bonds goes up, Colorado Mortgage Rates will fall.  This will also hold true as bond prices drop, Colorado Mortgage Rates will naturally go up.  This trend does not change for any reason, so what we have to look for in order to properly determine Colorado Mortgage Rates, are the factors that increase or decrease demand in the bond market.

Demand in the bond market will normally be determined by investor’s adversity towards risk.  Investors are inherently conservative and look for every opportunity to eliminate risk from their portfolios.  Colorado Mortgage Rates also use risk factors when determining its final rate which we will elaborate later.  Right now we will simply focus on the risk associated with investments.  Bonds are considered safe and sometimes risk free investments.  Because the risk is low the returns are also low.  Equities (Stocks) on the other hand will have high risk associated with them, but in order to compensate for the risk, stocks will need to offer a much better return.  Investors look at both markets and in times of bad economic progression bonds become a safer investment.  In times of good economic progression Stocks become a good investment.  Colorado Mortgage Rates will typically come in lower during low economic growth periods and likewise Colorado Mortgage Rates will suffer during good economic growth periods.  So if you simply want to get a feel of where Colorado Mortgage Rates are in relation to historical data look at what is going on in the economy.

What is going on in the economy is heavily monitored by investors when determining how aggressive they will be in buying and selling bonds.  Economic data reports are the primary driver of investor behavior in the markets.  These economic reports come out in a verity of formats.  Some that you may be familiar with are: GDP, Consumer Sentiment, Cost Price Index, and Jobless Claims just to name a few.  Colorado Mortgage Rates react immediately on the data released by these economic reports.  The economic standings are dictated by what is said in the data.  If the data says we are in an economic downward spiral investors quickly jump out of the equities market and reinvest in the bond market.  The increased buy demand drives to price of Mortgage Backed Securities up which drives Colorado Mortgage Rates down.  Obviously, Colorado Mortgage Rates have the opposite movement when the economic data released is better then expected.  This is how core Colorado Mortgage Rates are determined. 

The last component impacting Colorado Mortgage Rates are the loans risk parameters.  As I stated before investors demand a higher return when they take on more risk.  Colorado Mortgage Rates are no different in the returns required for the risk taken.  Colorado Mortgage Rates start off at a base risk factor.  Normally clients with a 720 or higher credit score, Full Documentation can be verified for their income, and a minimum of 20% down payment has been made will qualify under the least amount of risk.  These type of loans will certainly carry a low risk premium and will offer the best Colorado Mortgage Rates available.  Once the loan begins to add risk factors like 100% financing or credit scores below 720, Colorado Mortgage Rates begin to go up.  This is the most basic way to explain how Colorado Mortgage Rates are determined, and I would encourage you to contact us directly with any other Colorado Mortgage Rates questions you might have. 

Colorado Home Mortgage rates continue their up hill climb as new fears on inflation hit the market.  Colorado Home Mortgage rates reacted to Bernanke’s statements, which expressed concern for inflationary pressures.  He stated that we are not in jeopardy of hitting the inflationary numbers seen in the late 1970’s, which sent Colorado Home Mortgage rates into double digit levels.  He did state that his primary concern is price stability and inflation and that it will be the Federal Reserves primary objective to limit the impacts it my cause.  Colorado Home Mortgage rates did take a hit on investors concern about inflation.  It almost seems as if anytime the word inflation is mentioned by the Federal Reserve Colorado Home Mortgage rates begin to climb. 

We had only one economic report released and that was the Jobless Claims data.  This report does create some movement in Colorado Home Mortgage rates and today it was just enough to send rates back up for the 3^rd straight day.  Those who got into some of the long term locks we talked about early last month should be doing quite well.  We will continue to monitor the situation and let you know of any Colorado Home Mortgage rate movements.  Right now it appears that most of the bad news hitting the market has already done so.  At this time we will recommend that you FLOAT your Colorado Home Mortgage loan.  At last glance the Colorado Home Mortgage loan market appears to be making up some of the ground lost early this morning.  We will have to monitor the Employment numbers coming out tomorrow as this will definitely create some movement with Colorado Home Mortgage rates.  So far it appears that the month of June is shaping up like the month of May and Colorado Home Mortgage rates appear to be heading in the wrong direction.  Call me for you Colorado Home Mortgage questions.  If you are looking to close in the next week and just can’t hold on any longer on your Colorado Home Mortgage rate lock then make sure you lock at 6.0%.  The Colorado Home Mortgage originator will have to take a hit on their commission, but heck they should be thinking of you first and it is where I would lock my Colorado Home Mortgage rates today.

Colorado Home Mortgage rates will continue to be impacted by anything related to inflation and we will keep our ears open for anyone making any derogatory comments about inflation.  It is this type of talk that can send Colorado Home Mortgage rates back up to their three year high mark and it is not where we would like to be.  We still have options on Colorado Home Mortgage rates that can get you a Colorado Home Mortgage rate at or below 5.5%.  Finding it hard to believe? Well call me and I will explain.  The program requires no points and it is becoming a good solution to a time when Colorado Home Mortgage rates appear to have no cap in sight.  Remember to check out my other Colorado Home Mortgage site www.coloradohomemortgageloan.net to get the specifics on economic data being released.  Economic data moves Colorado Home Mortgage rates more then any other data released and should be understood before making a Colorado Home Mortgage lock decision.

Thanks Daniel

Colorado home loan rates took a big hit over the last couple of days.  We have had a variety of economic reports coming out and so far it is hard to determine the exact reason Colorado home loan rates jumped the way they did.  The biggest market mover yesterday came with Retail Sales.  Colorado home loan rates jumped after better then expected retail sales sent signals that we may actually be in a recovery period.  Recovery periods tend to send investors shopping for higher risk investments, which typically yield better returns then Mortgage Backed Securities.  We saw Colorado Home Loan rates get worse by about .375% depending on the bank.  Regardless of which bank you shop at, Colorado Home Loan rates did get worse by at least .25%.  Mortgage backed securities went into a selling frenzy yesterday, and one investor after another jumped on the band wagon.  The 5.5% coupon dropped down to 99-30 which put Colorado Home Loan rates at its highest level in 3 months. 

The economic data alone did not make Colorado Home Loan rates to increase the way they did.  The Federal Reserve board members spoke out yesterday and reiterated concerns for inflation. The Federal Reserves current policy is to fighting inflation at all costs, which tends to be good for MBS, but the fact that inflation is a concern in the short run is bad for Colorado Home Loan rates.  Inflation is bad news for Mortgage Backed Securities and the mention of it drives investors out of long term bonds and into short term investments.  The primary reason for that is simple long term bonds devalue as inflation increases reducing the return on the bond.  Colorado Home Loan rates always react negatively to this information.   The Federal Reserve representatives appear to be much more outspoken under its direction today then in the past.  The current communication policy is drastically different from the communication policy’s of past Federal Reserve administrations.  This is a new thing for investors to get their hands around.  During Greenspan’s administration with the Federal Reserve the policy was to maintain strict confidentiality and only report the data necessary to keep the market moving in the right direction.  Today it appears that the policy is to get more information out and let the financial markets dictate how it will react to the data. This is a good thing, but investors are still uncertain how to react to the information.  In the past they have reacted heavily on anything that was said, because the data was limited and we are still seeing this sensitivity with investors in the market today.

Colorado Home Loan rates did recover slightly today, but not enough to make a major impact from the losses felt over the last couple of days.  Luckily most of our loans in the pipeline are locked.  I like to think that I had something to do with that, but honestly we did have some luck involved.  However, if it makes me look like a rock star for the moment at least, then I will take that for as long as I can.  Colorado Home Loan rates jumped up about .5% over the last week, which will impact anyone trying to lock today.  Try not to let yourself be too distracted by the rate increases because, I believe we will have some better days ahead.  Consumer Pricing Index was released a few hours ago, and it signaled that inflation, at least for the moment, is not as bad as first anticipated.  The numbers came in lower then expected which is good news for Mortgage Backed Securities.  The Mortgage Backed Securities market reacted well to the news and Colorado Home Loan rates did rebound a bit today.  We have a variety of Economic reports being released tomorrow and you can learn about these reports at www.coloradohomemortgageloan.net/news

If you have not locked yet, then you are better FLOATING your rate for the time being.  The market over reacted in the last 3 days and it appears to be slightly undervalued.  With that said if the economic data being released tomorrow (Jobless claims, and Industrial Production) shows data that is Bond adverse then, much of the devaluation will be made up, and rates will certainly head in the wrong direction.  O.K that should cover me if the market continues to head in the wrong direction but here is what I believe.  If you have not locked yet the risk reward is good to wait until after the reports come out.  The Mortgage Backed Securities Market closed on a heavy upward swing which translates to lower Colorado Home Loan rates. We are hoping that this momentum will continue this evening in the foreign markets and carry over into tomorrow.  If that happens and the economic data is bond friendly then rates will probably make up a bit portion of what was lost over the last week or so.  The LOCK rate recommendation continues to stand at 5.75% and I believe we will get there again, but we need some help from the headlines to push investors back into the market.  We have seen a great deal of up and down momentums over the last 6 months and for the moment it does not look as if the trend will stop.  Colorado Home Loan rates should hit a point where locking will make sense, but right now the market just does not seem to be valued correctly to make that recommendation today.  I will continue to update you on where Colorado Home Loan rates are, but in the mean time have a great day.  I apologize for missing a couple days, but when the market goes crazy my time is better served on the phones with you.  If you need up to minute date info on Current Colorado Home Loan rate information call me it only takes me a minute or two to bring you up to speed, but an hour or so to write the information down.  Best of luck and stay tuned.

Daniel

Colorado Home Mortgage Loan rates improved over the last couple of days and we implemented an immediate LOCK recommendation.  Today it appears that Rates started off in the right direction, but at last glance it appears that Colorado Home Mortgage Refinance rates have peaked in its improvements.  You should not be harmed too much if you did not lock yet, but LOCKING is recommended.  Your Colorado Home Mortgage Refinance rate should be locked at 5.75% if not call me so that we can help.  Continue reading for more details on what is currently impacting rates.

Yesterday, we saw some up and downs in Colorado Mortgage Refinance Loan Rates, but overall rates did improve.  Today we are seeing some early morning movement, but so far we have not seen enough to make Colorado Mortgage Refinance Loan Rates change for the worse.  I still have a LOCK recommendation in place for 5.75%.  Most of my pipeline did get locked yesterday and should feel good about the Colorado Mortgage Refinance Loan rate they have in place.  Those that decided to be risk takers may see it pay off, but the risk reward did not out way the LOCK recommendation.

Trade Balance report was released today and is viewed as a bench mark for predicting future GDP numbers.  Though the Trade Balance does very little to move Colorado Home Mortgage Refinance rates in one direction or the other, it can predict other indicators which does impact Colorado Home Mortgage Refinance rates. The volatility in the monthly trade balance can play an important role in forecasts of GDP. Net exports are a relatively volatile component of GDP, and the trade report provides early clues to the net export performance each quarter. There are many complex links between the Trade Balance and Mortgage Backed Securities markets, and some work in opposite directions, so the net effect is that it is difficult to predict. For this reason, the data rarely produces much movement in MBS prices.

What has caused movement is investors fear for where the economy is going.  I know one day I say that investors are confident and the next day I say the exact opposite.  Well the fact of the matter is that investors are Lemmings and will follow any trend on a whim.  Oil reached another record high and AIG announced a major write off in Mortgage Backed Security bonds.  Which on the surface should be bad for Colorado Home Mortgage Refinance Loan Rates, but today it appears that it has not impacted the market much.  However as I write this the MBS market appears to be in a down hill slide which means that Colorado Home Mortgage Refinance rates will be taking a hit early this morning.  I will keep you posted as I see things in the Market, but right now or at least this morning if you FLOAT you will be taking a risk.  My recommendation is to LOCK immediately and call me with your Colorado Home Mortgage Refinance questions.  Don’t Forget to Check out www.coloradohomemortgageloan.net and hit Blog 1 for additional information.  This will be updated around noon todayJ

Daniel

The lack of Economic news continues to have investors looking to the stock market for signs.  Colorado Home Mortgage rates started off stable this morning as retailers continued to report week by week decrease in sales, causing investors to have some concerns about the risk in stocks.  The day appeared to be heading in the right direction and Mortgage Backed Securities began to trade a bit higher then yesterday.  This was short lived, as the headlines reported that Disney had higher then expected 1Q profits.  The news forced money out of the bond market and into the stock market. This may be the reason for the late day rally in the Stock Market.  Colorado Home Mortgage Rates did jump a bit late this afternoon, and we may see Colorado Home Mortgage rates continue to rise tomorrow morning.  Having just watched Lilo & Stitch with my 2 year old I can understand the success Disney has reported and unlike any of the oil companies, I actually feel good about where they are going.  Colorado Home Mortgage rates will however, continue to be impacted by headlines throughout the week.  We have a couple of reports coming out tomorrow which can change the momentum and hopefully push Colorado Home Mortgage rates back down.  We will watch these reports tomorrow and give you an updated on where the market is heading.  I do have some concerns building up lately.  Everything I am seeing in the market shows that we have some tough times ahead as it relates to Colorado Home Mortgage rates.   We will continue to set our locking point to 5.75%.  I have several people holding out and unless the momentum changes, we may want to go ahead and start locking in your Colorado Home Mortgage rate. 

There are several things that I am concerned with, the biggest issue I have relates to how investors currently view the economy.  I believe investors have been hit so hard for poor projections that they have become ultra conservative.  The conservative approach has caused investors to project data at extremely low levels.  In theory investors use this information and act accordingly as they buy and sell investments.  Typically, investors will buy Mortgage Backed Securities during tough times and stocks during good times.  When investors project poor economic data in the near future, activity in the bond market will increase.  This will cause Colorado Home Mortgage rates to improve.  The problem I am having recently is that I just don’t believe that investors are responding to the market according to the projections shown. This is causing the Mortgage Backed Securities market to be under inflated.   Now when the actual data comes out investors have been reacted accordingly, causing the market to fluctuate up and down depending on what the economic data shows.  The only proof I can give that will show the market is under inflated is the relationship between the 10 year Treasury bond and the 5.5% coupon bond.  The 10 year treasury and the 30 year 5.5% coupon bond has shown signs which indicates a larger then expected pricing gap.  The gap used to be much greater, but over the last couple of weeks has dissipated a bit.  Though the gap is smaller we still have some room to move. Colorado Home Mortgage rates will see the benefits of the gap reduction over time, but it will take some time.  This will all come down to investor confidence in the Mortgage Backed Securities market.  Right now investors are not showing the confidence needed to reduce Colorado Home Mortgage rates down where we would like to see them.  It is hard to project when investor confidence will return, but all the negative press about Colorado Home Mortgage companies going out of business or needing help certainly does not build the momentum we need.  Countrywide and Fannie Mae are good examples of why investor confidence is so low.

The next issue I see is the continued inflationary risk in oil.  It is obvious that when shipping cost increases the increase in cost is passed down to consumers.  The increased pricing causes inflationary pressure, which adds more bad news for Colorado Home Mortgage rates.  We will see this issue in the market for some time to come.  Another problem facing Colorado Home Mortgage rates is corporate profitability.  The corporate profitability reports have shown some real surprises in 1Q 2008.  Several companies projected to report poor profitability actually reported that profitability was up.  Adding fuel to the fire was the number of Mortgage companies that have indicated that their default rates will continue, causing sever profitability issues in the future.  Countrywide continues to be the Headline leader in bad mortgage performance, but out just today, Fannie Mae has reported similar issues in their holdings.  This has investors concerned about a possible bail out needed from the Federal Reserve.  This will certainly add to an already unstable Mortgage Backed Securities market and will have investors continuing their conservative approach in the market. 

My recommendation is to LOCK if and when you can get the recommended Colorado Home Mortgage rate of 5.75%.  Its looking like 5.875% will be around for some time.  Luckily we did hit a pricing ceiling at 5.875% so the rate will hold strong, but any major news can have rates going to 6.0%.  I will be watching the Colorado Home Mortgage market very closely over the next few days.  We may have to suck it up and simply lock while we are under the 6.0% range.  Call me and I will be happy to answer your Colorado Home Mortgage questions.  I had a crazy busy day to day that had me in and out of the office, so I apologize for not getting the Colorado Home Mortgage information out to you sooner.  In retrospect rates did not move much if any since yesterday and seem to be lingering around the 5.875% range.  I will post earlier tomorrow.

As I have stated before I will summarize the blog info in the last paragraph so here it is in the simplest of terms.  Colorado Home Mortgage rates today are at 5.875%.  These rates will be impacted by any Headline news because economic data this week is light.  The Headlines had Disney showing stronger then expected profits which caused Colorado Home Mortgage rates to go up a bit.  The Colorado Home Mortgage rate did not go up enough to hit 6.0%.  We expect the Market to start off poorly tomorrow riding out the news seen today.  We have a couple of reports that may help rates but will not know until these reports are released.  Right now if you can get 5.75% at all I would LOCK.  If you are a gambler we do have a long way to go in order to get below 5.75%.  Today 5.75% will have an additional cost to it, I am hoping that the cost goes away by the end of the week at which time I will have a strong Colorado Home Mortgage LOCK recommendation in place.  Call me with your Colorado Home Mortgage questions.  Thank you for reading and please remember to visit www.coloradohomemortgageloan.net/news for more information.

Daniel