Colorado Home Mortgage Banking

Colorado Home Loan rates dropped slightly yesterday afternoon as Corporate profits began to come in lower then expected.  Was this Shocking news for investors?, not really.  Corporate Profits were expected to come in lower then projected.  So why are we not seeing the movement in Colorado Home Loan rates normally attributed to these types of market conditions.  Simply put investors don’t have a clue on how to react to this market.  Investors have experienced this market before in 2002 and 2003.  So why the confusion?  I believe the deer in the head lights approach currently being used in the market comes from the whipping investors have had in the last 6 months.  Investors have moved in and out of the stock market at the worst possible times causing their clients to raise serious confidence issues in the portfolios these investors are handling.  Now I know you will have someone out there that is a financial planner that will claim left and right about how good their portfolio’s are doing.  OK I will give that Financial Planner the benefit of the doubt.  However most investors have lost big over the last 6 months, and this comes at a time when the market overall has not dropped that much.  What this means is investors are getting it wrong and they have been beat down enough.  Currently we are seeing lenders react in a similar way.  Colorado Home Loan Rates SHOULD be better today then they are.  Rates in the Mortgage Backed Securities market indicate that Colorado home loan rates from our lenders should be lower, but they just are not.  The spread between the 10 year bond and the 30 year bond is at a point that should have Colorado Home loan rates posting a better rate today as well, and that is just not the case.  So what the HECK is going on.  Investors are just sitting back and waiting to see what happens.  This is a sign for any prospects looking for a Colorado Home Loan that a broker will be a better resource to you.  The reason a Colorado Home Loan broker will be a better resource to you is the flexibility to choose between a number of Colorado Home Loan lenders.  Someone out there will figure it out soon, and we are already seeing some larger interest rate spreads between a number of Colorado Home Loan lenders.  Having the flexibility to choose our lenders gives you the flexibility to get the best Colorado Home Loan rate being offered in the market.  With all that said, Rates will probably trend a little higher today.  The Colorado Home Loan rate increase will be driven by the over supply of bonds.  FLOATING remains in effect, and as soon as lenders figures out that the economy has some major obstacles to overcome, the sooner rates will drop again.  I am forecasting a slight drop in rates by early next week.  We put a lock recommendation last Friday and if you locked then, you made out pretty well, if not stay tuned.  I believe we will get back to some of those Friday lows by Wednesday or Thursday next week.  God Bless and call me anytime:-)  I will post a new posting on www.Coloradohomemortgageloan.net around 2pm this afternoon. 

Daniel

I said earlier that when the price alert comes out I would let you know, well Colorado home loan rates just got better.  I am putting in a Lock recommendation.  Colorado home loan rates may improve a bit next week if you want to take a risk, but Colorado home loan rates are good enough to lock.  Call if you have questions, but Locking will be a good option.

We continue to see Colorado home loan rates impacted by yesterday firestorm of information.  UBS and their public offering to raise capital had many investors trying to cash in for a quick profit.  Obviously something that big would have to continue into today’s market, moving Colorado home loan rates even higher then yesterday.   I stated yesterday that we would need some bad economic reporting to stop the momentum and today we did have a variety of reports come out.  Best Buy released their profit reports, indicating a better then expected increase in their net income.  Best Buy is a good company to measure economic movement.  They tend to be a nonessential brand purchase and increases in their performance typically indicates increased economic spending.  This may be the first sign of an economy moving in the right direction.  Another economic report coming out today came from ADP’s (Automatic Data Processing, Inc.).  They report on employment numbers, which are independently issued, and should give us a preview of what we have in-store in the  census report due to be released later this week.  The ADP report did come in as expected which will not have an immediate impact on Colorado home loan rates.   We had our worst reporting since 2003 and experts now believe that we have several months of negative job growth still waiting to be released.  With negative Job growth and negative economic growth investors will soon figure out that their best bet will be a portfolio filled with secure safe investments, like Mortgage Backed Securities.  Colorado home loan rates will react to this news, but because the news came back as expected investors have elected to take their chances in the stock market.  Rates should increase slightly again today.  Investors still need more negative information to change the bullish approach currently being used.  The unemployment numbers being released at the end of the week should prove to be what investors need to change their current investment strategies.  If the numbers come in weak which was previewed today, rates should begin to drop immediately.  Finally, Keycorp announced that they would be buying National City a struggling mortgage lender in the near future.  This move should prove to investors that we still have strong stability in the market,  The stability in the market should give investors the confidence in Mortgage Backed Securities needed to drive Colorado home loan rates back down.  We will watch that closely in the next couple of days to see how that might impact Colorado home loan rates.   We will keep our Colorado home loan Lock recommendation as a FLOAT, but if the employment numbers come in better then expected at the end of the week, we will need to be prepared to cut our losses and LOCK.

I am still amazed at all the activity from yesterdays Colorado home loan markets that sent rates soaring.  The Dow was up over 400 points, but the market did reset today and the Colorado home loan market stayed pretty steady.  Lenders were quick to react early on, sending Colorado home loan rates up.  The 5.5% coupon bond which is the primary bond traded in the market closed the day up causing lenders to reprice yet one more time but this time Colorado home loan rates got better.  Rates were not as good as early on yesterday, but they were still very reasonable.  The Federal Reserve chairman spoke about leaving the door open for continued interest rate reductions in order to stimulate the economy which had many Mortgage Backed Security investors paniced about inflation.  We should all know by now that inflation sends Colorado home loan rates shooting up and it goes to show that investors pay special attention to what is said by all the members of the Federal Reserve.  I believe that at this point Colorado home loan rates are still good and if you can lock at a rate that is desirable then Lock even if it is a long term lock.  I have seen too many times when economic news is light inflation tends to be a fail safe topic to talk about which can be devestating to Colorado home loan mortgage rates.  One last though over the last 12 months Stated income loans have taken a hit and as a broker I still have asses to Colorado home loan programs which will allow stated income to qualify.  I bring this up because out of the 41 Colorado home loan lenders I use only a handful still have these programs available and if you currently have an adjustable rate mortgage, Locking something in long term may be the right choice.