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 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 loan rates saw some relief in the market today.  We had a very tough day yesterday and saw Colorado home loan rates jump up about .25%.  Today we have recovered some of the losses from yesterday, but we still have some ground to make up to recover completely from yesterdays losses.  I believe that the market will continue to improve up through Tuesday and at this point will recommend that you continue to FLOAT.  If you are conservative in anyway and want to take the risk out of the market then go ahead and LOCK.  You should be able to get 5.75% on your 30 year fixed Colorado home loan rate program.  The only economic report that came in today was the Existing home sales data.  The data indicated better then expected sales numbers and as a result held Colorado home loan rates from improving even more.  Though the data came in slightly better then expected it still came in below 5 million which is historically low.  Following the Existing home sales numbers, were current home inventory numbers which recorded its highest level since 1985. 

Colorado home loan rates probably saw most of its improvements due to the fact that the Mortgage Backed Securities market appeared to be slightly undervalued making it a good buy.  The 10 year treasury saw some great improvement creating an even bigger separation in price between the 5.5% coupon bond and the 10 year Treasury note.  In simple terms it means that we have room for additional improvements with Colorado home loan rates in the short term and will probably see most of the losses experienced from yesterday regained by Wednesday next week. 

We have several economic data releases due out next week and all of them will play a role in how Colorado home loan rates will move.  You can find out more about these reports at www.coloradohomemortgageloan.net/news  Please let me know if you have any Colorado home loan questions and have a safe weekend.

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 Loan rates have not moved at all today.  We had GDP and PMI reported earlier today and both reports made very little impact up or down for Colorado Home Loan rates.  These reports did come in slightly above expectations, but it was close enough to say expectations were met.  Normally this would have a negative impact on Colorado Home Loan rates, but so far the impacts have not been felt in the Mortgage Backed Securities Market.  We are now waiting in anticipation for what the Federal Open Market Committee has to say.  We are all hoping that they do not make any comments about inflation.  Inflation talk will certainly be bad for rates.  We do have a large number of other economic reports coming out over the next couple of days and we are hoping that the data will be good for Colorado Home Loan rates.    Currently Colorado Home Loan Rates are still trending at that 5.875% - 5.75% depending on which investor and at what cost.  If the FOMC reports as expected and don’t do anything unexpected we believe that Colorado Home Loan rates will begin to see some improvements.  I will be out for lunch when the FOMC finally reports and will give you a quick recap later today.  In the mean time we are still recommending a FLOAT on your Colorado Home Loan rate, but we are heading into the eye of the storm and will be in for a bumpy ride if the information released later today does not come in as expected. 

Mortgage Backed Securities were sold off in mass numbers overnight in the foreign markets, sending today’s opening numbers right into the cellar.  Colorado Home Loan rates started the morning off about .25% higher then yesterdays closing Colorado Home Loan rates.  We are now seeing Colorado Home Loan rates hitting 6.0% which has me a bit concerned on where rates will finally cap at, before we begin to see some relief.  Its getting harder and harder to tell people to floating especially since rates continue to rise.  With that said we should keep one thing in mind, and that is as much as rates have gone up over the last 3 weeks rates still remain right around 6.0%.  6.0% Colorado Home Loan rates are still better then our 12 month peak points and continues to be a respectable rate.  I don’t want to alarm anyone right now it just appears that the market is experiencing instability.  With this instability investors are acting on fear that the Mortgage Backed Securities market will some how loose its current credibility.  The fear should soon dissipate from Mortgage Backed Securities and confidence to buy will return as investors begin seeing losses within the equities markets.   We need to remember that the market will respond accordingly to the economic data being released, even though we are not seeing it reflected in the price of Colorado Home Loan rates today.  Historically Mortgage Backed Securities have had their movements primarily dictated by economic reports released through out the month.   This does not appear to be the case now we what we are seeing in today’s market is the exception.  We will get back to our old predictability soon, especially as we get more and more negative economic data.  As expected, Consumer Sentiment came in at a 30 year low, hitting the lowest Consumer Sentiment reading since 1982.  Consumer Confidence is expected to come in just as low, which will be the push we need to have Colorado Home Loan rates moving back into the right direction.  What is disappointing about what we are seeing in the market is that these reports should have moved rates considerably lower today, but instead will only stop Colorado Home Loan rates from increasing.  We should see the market find the stability it needs over the next week or so at which point we should see rates begin to fall.  Stay tuned and call me with any of your Colorado Home Loan Rate questions.

Today should be a light trading day for Mortgage Backed Securities.  As a result Colorado home Loan rates will fluctuate up and down throughout the day.  At this point if you have not locked your Colorado Home Loan rate you have basically committed that you will float through tomorrow.  We will be getting the Durable Goods report which reports the number of new orders placed with domestic manufacturers for immediate and future delivery. Durable goods are items considered to be useful for at least three years (such as vehicles, large appliances and computers.) 

Last month the Durable Goods report came in with negative growth number sending Colorado Home Loan rates immediately into favorable pricing.  Investors have set their expectations tomorrow indicating minimal growth in this category.  I believe that the expectation is still to high and that for the second straight month we will see negative numbers.  I will tell you why.  Durable goods growth indicates expansion in the economy.  In order to report positive growth for Durable goods companies would have to be projecting future increases in production.  Right now all the signs in the market indicate that production has decreased.  If we have decreased production will companies be focusing on increased future production? If I am right about the Durable Goods number we should see Colorado Home Loan rates improve. 

The last thing to monitor will be the Mortgage Backed Securities market today.  No matter what you want to believe there will always be some insider trading going on and if we see any major trends in the market it might be a preview for what is in store for the reports due out tomorrow.  So far the Mortgage Backed Securities market has traded down causing Colorado Home Loan rates to increase slightly today.  We definitely do not want that type of trend, because it could indicate that tomorrows Durable Goods report will come in higher then expected.  If that is the case Colorado Home Loan rates will certainly increase over the next few days.  Stay tuned for a late day buying frenzy if this happens I would bet that the report tomorrow on Durable goods comes in lower then expected.  Just my opinion, but lets see what happens.  I will keep my FLOAT recommendation in place and maybe by this time next week we will be able to lock in 5.5% yet again.  Stay tuned and call me with any questions.

We have a Colorado Home Loan Price Alert for the better.  Looks like the lemmings on Wall Street are starting to come to their senses.  I Still recommend a Colorado Home Loan FLOAT, but stay tuned to the stock market for any other big corporate reports.  So far Colorado Home Loan rates have made up everything lost from yesterday making the two day combine margin actually higher then what was quoted on Wednesday.  Colorado Home Loan rates do appear to be worse then Wednesday which means that lenders have the Colorado Home Loan Programs priced to high.  We expect lenders to get back in line by next week.  Stay tuned and call with your Colorado Home Loan questions.

The last couple of days have been ugly for those trying to lock their Colorado Home Loan.  We saw Colorado Home Loan rates increase about .375% - .500% depending on the lender in just two days.  If you look at the previous couple days blogs you will see why rates increased, but I will also give you a quick recap.  Inflation will always play havoc on Colorado Home Loan rates.  After the Producer Price Index report came out on Tuesday, investors began to sell off their Mortgage Backed Securities in great numbers.  The supply obviously reduced the price, which in return increased Colorado Home Loan rates.  On Wednesday the Consumer Price Index came out and it read as expected.  Normally this would be good news for Mortgage Backed Securities, but news in the stock market created another sell off of Mortgage Backed Securities.  Reports of several key companies indicating better then expected Profit earnings, sent hope of economic recovery.  This allowed investor the confidence needed to invest in the stock market and in return funnelled monies out of the Mortgage Backed Securities Market.  Due to this Colorado Home Loan rates again loss some ground yesterday.  Today we have had three economic reports come out.  These reports in themselves are not market movers, but together will have impacts on the market.  Jobless Claims, Leading Indicators, and Philadelphia Fed Index all came in at or below expectations.  The numbers show that we still have some major work to do to get out of the current economic down turn and should start seeing rates improve again.  Its scary how quickly rates can move up, but over the last year we have seen much of the rate increases drop back down over time.  The key is to lock in at the right time.  I always say that 5.5% is the bench mark Colorado Home Loan rate to lock and so far that philosophy has done well for clients locking at that rate.  FLOAT remains my recommendations and hopefully over the next few days rates will start coming back in line.  Today the Mortgage Backed Securities market appears to be flat probably recovering from the selling frenzy that took place over the last couple of days.  A Flat market is a good market because the bleeding has stop at least for now.  We may see a small dip before we see a recovery, mainly due to volumn in the market.  Light volumn typically drops pricing in the Mortgage Backed Securities market.  Colorado Home Loan rates will begin its recovery as soon as we have any reports stimulating volumn in the market again.  We had a couple of good days for the stock market, but we are not out of the woods when if comes to negative economic reports and the moment that information hits the market again will be the moment we see Colorado Home Loan rates drop.   We have very light reporting on economic indicators over the next 2 weeks.  April 30th will be a big day for Colorado Home Loan rates so we will need to keep a close eye on what reports will be released.  For now unless we have big positive news for the stock market things should start recovering.  A good way to monitor what Colorado Home Loan rates are doing is to see whether the stock market is up or down.  Odds are if stocks are down Interest rates are down.  If stocks are up the interest rates will be up as well.  With very little economic news to report the biggest driver will be the stock market.  Colorado Home Loan rate recommendation remains as FLOAT. Call me anytime if you have questions, until then best of luck and God Bless.

Daniel

Colorado Home Loan Rates have been repriced by several lenders for the worse.  The Reprice is in direct relation to the stock market increases.  Looks like the bulls are winning for now.  Don’t be to alarmed normally when the buying frenzy stops Mortgage Backed Securities increase.  Colorado Home Loan rates should get better by the end of the week.  Today we have some scary things showing up in the Colorado Home Loan rate market, but most of the increases in rates are due to volume being pushed into the stock market.  Stay tuned for additional Colorado Home Loan rate news….