Colorado Home Mortgage Banking

Truth-in-Lending

The Federal Truth in Lending Disclosure is a federally mandated disclosure required with every loan application before the actual loan period begins.  Its primary function is to disclose the annual Percentage Rate, finance charges, amount being financed, total payments being made and finally your sales price or your refinance loan amount.

At the top of your disclosure you should see your information, the lenders information, address, and date the disclosure was prepared.

Next you will see the Annual Percentage rate.  The most complicated thing about the Truth-In-Lending disclosure is the Annual Percentage Rate.  The Annual Percentage Rate is the cost of your entire loan with all associated finance charges expressed as a yearly rate.  This rate will be different from your actual note rate being disclosed to you as the rate to lock in for you loan.  It will be higher and it will be the best indicator of what your annual mortgage rate for your new loan will be.

The next section shows the Finance Charge which can be quite intimidating at first glance.  Keep in mind this will be the amount of interest paid on the loan over the full term of the loan program.  The Velocity of money applies in this section as it is the cost of money over time. 

Amount Financed is simply the loan amount you are applying for.

Finally the total of all payments will be your Finance Charge plus your amount financed.  It will be much higher then what people expect.  It is important as you look at that number that again it is the money borrowed over time.  Take a look at what homes sold for 30 years ago in comparison to what they are selling for today.   You can easily see that the value of money is much lower today which makes the value of homes much higher.  Borrowers looking at a Truth-In-Lending type statement 30 years ago would have seen that total payment for around the same costs homes are today. 

The Next section will give you your payments and beginning/ending dates for the loan.  These payments will only include Principle and Interest and will not include taxes, insurance, HOA, or Mortgage Insurance.  On an Adjustable Rate Mortgage option it will give you the number of payments before your rate adjusts and then the total remaining payments.  These remaining payments will not calculate the estimated change in your payment do to an adjustment tied to the loan program.

Towards the bottom of the Truth-In Lending you will see the penalties associated with your loan for early payoff or payments received after the due date. 

The remaining items are normally left blank, but if you are interested in Credit Life or Disability the feature will typically be offered by the lender after the loan closes.

Colorado Home Mortgage Refinance rates appear to be heading back up a bit based on the sell off pressure in the Mortgage Backed Securities market.  Most of today’s pressure appears to be investors capitalizing on short term profits from the recent gains seen in the MBS market.  Today’s Economic data favored Colorado Home Mortgage Refinance rates but it has not shown up on today’s Colorado Home Mortgage Refinance rate sheets.  We should lock in a rate before we loose any ground in the market.  Colorado Home Mortgage Refinance rates may take a couple of days to recover, but it should get better.  I just don’t want you to get stuck in a small spike situation.  You will probably not loose out if you decide to float, but investors seem to be somewhat unpredictable with their sell and buy tendencies.  The economic data due to be released next week should give Colorado Home Mortgage Refinance rates another boost in its attempts to make up some of the increases seen from last week.

Colorado Home Mortgage rates should have reacted to the Economic data that was released today, but so far it has not had the reaction that we would have expected.  Jobless Claims, Leading indicators, and Philadelphia Fed Index all came in either meeting expectations or worse then expectations.  You can find out more about the actual data at www.coloradohomemortgageloan.net/news for now just know that the data was favorable to Colorado Home Mortgage Refinance market.  The Primary reason for Colorado Home Mortgage Refinance rates not moving on the information is due to profit takers looking for a short term gain by selling MBS.  Next week we will see another consumer sentiment report which rates people’s perception of the market  We expect that this report will come in at an new all time low.  This will have investors looking for a secure investment and will help drive Colorado Home Mortgage Refinance rate downward.  The consensus is that the report will come in around 57 which will set a new record low for this economic indicator.

Finally we need to look at the spread lenders are currently pricing into the Colorado Home Mortgage Refinance rate sheets.  It appears that the cushion that lenders had last week are now in line.  This is probably why we saw our late afternoon Colorado Home Mortgage Refinance rate improvements yesterday.  Please continue to stay tuned and don’t feel bad if you decided to FLOAT.  I do believe that Colorado Home Mortgage Refinance rates will see continued improvements through next week.  The reason I am making the Sort term Lock recommendation for your Colorado Home Mortgage Refinance rate today is strictly for people closing in the next 10 days otherwise we will remain with our FLOAT recommendation.  Please call me with your Colorado Home Mortgage Refinance questions and let me know how I can help you.

Daniel

Colorado Home Mortgage Loan rates saw some relief from a variety of economic reports indicating no major surprises.  Inflationary numbers appeared to be in line with expectations and the feared increases in inflation brought on by the Federal Reserve appear for now to be overstated.  Colorado Home Mortgage Loan rates dropped a bit on the news, but best of all, rates don’t seem to be climbing.  A much needed break from what Colorado Home Mortgage Loan rates have been doing over the last couple of weeks.  It may take some time before we see Colorado Home Mortgage Loan rates drop significantly, but for now we are heading in the right direction.  We had four economic reports released today, you can read more about their exact impacts at www.coloradohomemortgageloan.net/news but the overall effect from these reports were positive.  I am maintaining a FLOAT recommendation through Thursday, mainly because not all of the Colorado Home Mortgage Loan rate improvements have shown up on the investor rate sheets.  Much of the improvements are being held back right now in the event something else rocks the bond market as sparks another sell off of Mortgage backed Securities.

Colorado Home Mortgage Loan rates still appear to be undervalued in the bond markets. Based on the economic data reports; we still have some room to see rates trickle down even further.  The MBS market closed 14 ticks higher then when it closed yesterday, which translates to about 1/8^th better for Colorado Home Mortgage Loan rates.  We should continue to see improvements tomorrow as no economic data will be released.  The lack of data allows headlines to dictate market movement, and we have already seen a bulk of the bad headlines make its way into the market.  I am expecting Colorado Home Mortgage Loan rates to maintain its current downward direction through tomorrow.  Thursday will be another big day on the economic reporting front with three additional reports will find its way into the market.  Jobless claims, leading indicator, and Philadelphia Fed Index are all due to report, and based on the consensus, I believe we could have another good day for Colorado Home Mortgage Loan rates. 

We should not forget that we still have some major obstacles to overcome before Colorado Home Mortgage Loan rates see anything below the 6.0% range.  It has been awhile since I recommended a LOCK situation and would advise you to seriously look at locking tomorrow if in fact you are closing in the next 10 days.  My goal for your Colorado Home Mortgage Loan rates is to see it at 6.0% or below.  I have had to move my Colorado Home Mortgage Loan rate lock recommendation up and up based on market conditions, but we have been able to lock in under small pockets of rate drop periods.  It has been very tough over the last 3 weeks and we have had the FLOAT recommendation ever since.  I believe if we continue to see the movement we are seeing over the last few days Colorado Home Mortgage Loan rates may find its way back to 6.0%.  Right Now I do not see that in the cards for at least another 2 weeks, which means a lot of momentum needs to show up before Colorado Home Mortgage Loan rates drop to that point.  If time is not on your side, we have other options to keep you below 5.5%, but these options are only a temporary fix.  If you need to LOCK today and only want a FIXED rate option then 6.25% will be the Colorado Home Mortgage Loan rate to settle for.

Please call me with your Colorado Home Mortgage Loan rate questions and give us a chance to show you what we can do for you.

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 Home Mortgage Loan rates appear to be on the rise yet again.  I will get into the more technical reasoning on why at www.coloradohomemortgageloan.net/news.  For now let’s keep things simple.  Colorado Home Mortgage Loan rates continue to climb on information being released that inflation has begun to increase higher then expected.  So far we have seen the biggest increases since 2007 and it appears that we are not slowing down.  Let’s take a look at the variety of economic reports which came out today and had an impact on where Colorado Home Mortgage Loan rates were heading.  The first was Retail Sales which came in better then expected but not enough to show any strong improvements with our Economy.  It was enough however to move Colorado Home Mortgage Loan rates in the wrong direction.  I don’t know why the increased level in sales was such a surprise.  I honestly believe that the consensus was set too low.  In a society willing to spend whatever they have what else do you think could happen as millions of Americans received tax refund checks.  This should not have been the surprise it was and it certainly should not have caused Colorado Home Mortgage Loan rates to move the way they did. 

Colorado Home Mortgage Loan rate movement can be contributed mainly today to the on going negative inflationary news being released by economic data and media attention.  Colorado Home Mortgage Loan rate sensitivity is at an all time high especially on anything related to inflation.  Import and Export prices were released indicating increased price movement over last month.  This is an inflationary report and will have an impact over today’s Mortgage Backed Securities market.  The consensus for Import and Export prices were that prices would remain unchanged, but in stead it came in showing an increased price movement.  The price increase indicated that inflation was on the rise and as a result the market reacted accordingly.  The pressures realized in the report created more upward movements in Colorado Home Mortgage Loan rates.  I am not sure why experts though inflationary pressure would be lower this month then last month, but that is what the consensus stated.  I am a bit surprised that the consensus on price movement was so low, I would have predicted some movement but I guess that is why the experts release the consensus data in the first. 

Colorado Home Mortgage Loan rates reacted to one other economic report being released today which was the Jobless Claims report.  This report came in worse then expected and was the only report today that should have helped Colorado Home Mortgage Loan rates.  However the news was not good enough to stop the upward movement already felt in the Colorado Home Mortgage Loan rate market.  Inflation is obviously the primary concern right now and the Federal Reserve Board is not holding back.  We have heard from several members lately that inflation is quickly becoming the Boards Primary objective.  Yesterday Charles Plosser went on record expressing concern and his focus on a growing inflationary problem.  The message delivered by Charles Plosser could have in itself created much of the movement felt today on Colorado Home Mortgage Loan rates.

 Finally it has become increasingly more difficult to put a LOCK or FLOAT recommendation in place but here are the facts and you make the decision.  If CPI reports higher then expected tomorrow Colorado Home Mortgage Loan rates will continue to climb even higher then current rates.  We are at a point where the price ceiling has been breached and Colorado Home Mortgage Loan rates will move up quickly.  If you are going to close in the next 10 days then LOCKING would be recommended.  The risk reward is not that good.  If you have time to gamble then a lower then expected CPI report will have rates improve quite a bit.  We just don’t know how much the inflation fears will continue to cause Colorado Home Mortgage Loan rates to move.  One thing to think about current Lenders have hedged themselves a bit too much putting them in a safer position.  In the mean time they are putting consumers in a position where Colorado Home Mortgage Loan rates are about .25% higher then they should be.  This is why a low CPI report should move Colorado Home Mortgage Loan rates down fairly quickly.   I will talk a lot more about interest rate movement on www.Coloradohomemortgageloan.net/news but for now LOCK if you are closing in the next 10 days, FLOAT if you have over 15 days before closing.

Call me with your Colorado Home Mortgage Loan questions.

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 Mortgage Loan rates increase again on positive Durable Goods data.  The Durable Goods report came in better then expected showing only a .5% negative increase versus the projected .7% decrease.  The news sent Colorado Home Mortgage Loan rates on an up hill climb.  Today we will certainly see Colorado Home Mortgage Loan rates around 6.0%.  Though the information came in better then expected, historically the figure is still considered poor for industry standards.  The positive driving factor in Durable Goods came from its core component, which showed a positive growth of 2.5% versus the projected .7% decrease.  This was viewed by many experts and investors as an extremely good sign for potential recovery.  It should be noted that the durable goods report still indicated a declining figure which means that manufacturing sectors are still contracting. Investors are putting all their bets on the Core component which actually showed a positive growth figure.  I made the recommendation to FLOAT and those who FLOATED will be paying a higher price today for their Colorado Home Mortgage Loan rate.  I will continue to push the FLOAT recommendation through Thursday, because at this point most of the damage in Colorado Home Mortgage Loan rates has already taken place.  Locking your Colorado Home Mortgage Loan rate now would have you locking at this months high point.  You have already demonstrated that you are willing to take risks so you might as well ride out the other reports coming in over the next few days.   We also have preliminary GDP being reported today which could bring things back a bit from the low points felt this morning.

Colorado Home Mortgage Loan rates have also been impacted by Crude Oil.  Crude Oil appears to be loosing some ground which investors are viewing as a positive for the equities market.  Money will be pulled out of Mortgage Backed Securities in order to capitalize on a growing equities market.  When money is pulled out of the bond market demand decreases, which in return, increases Colorado Home Mortgage Loan rates.  It is still such a volatile market today and investors are trying to get ahead of the next buying and selling trends.  Thank god I do not have to be the person selling and buying bonds it can be a real tough industry to be a part off.  Investors, as they try to get that upper hand, tend to over react to market news very quickly.  Today we may have seen a little over reaction which has caused Colorado Home Mortgage Loan Lenders to do the same.  This is the biggest reason we have seen increases in Colorado Home Mortgage Loan rates so far today.  It will take poor performing economic reports to bring things back in line and as I look at the economic reports forecasted in the next 3 days we will see plenty of opportunity to bring the market back.  Colorado Home Mortgage Loan rates are priced much higher today then what was seen Thursday and Friday of last week.  Those of you that Locked your Colorado Home Mortgage Loan rate when the Lock recommendation was in place, good job you can breath easy and know you have Locked in a good rate.  Those of you that took the risk to ride out a better rate are natural gamblers (I like that) and should now just hold tight on the FLOAT recommendation.  We may see Colorado Home Mortgage Loan rates continue to rise this week if the data continues to come in better then expected, however I do believe we will see rates drop down again in the weeks to come.  We are seeing bits and pieces of data indicating that we are on our way up, but consumer sentiment and consumer confidence indicates consumers buying tendencies.  With those reports coming in lower and lower every month I can’t help but to believe that consumer spending is down, which is basically the core component in our economy.  If we do not have money circulating through the economy in the volumes we are accustom to, it is hard to show any sustainable future growth prospects.  It is only when people begin to react positively to the economy that true recovery will be felt.

Please check out www.coloradohomemortgageloan.net/news for more info and call me with any of your Colorado Home Mortgage Loan questions.

Daniel    

Colorado Home Mortgage rates appear to be hovering around the same rates given out on Friday.  Most of our Colorado Home Mortgage rate movement today will take place do to Headlines versus economic data.  The only report released today was the Leading indicators data which reports on a variety of economic factors, which predicts strength in the economy 6 to 9 months in the future.  This report does not play a major role when it comes to Colorado Home Mortgage rates, but it is monitored.  The reason the role is down played has to do with the fact that most of the indicators used in the Leading Indicator report have already been reported individually and have already made there impacts on the Colorado Home Mortgage Market.  The report did come in a bit higher then expected but so far has not created any pricing issues in the market.  Today’s Mortgage Backed Securities trading will hinge on Market headlines and so far the Market Headlines have not been good for Colorado Home Mortgage Rates.

We will have to wait and see what else is being reported in the news but here is what we have so far:  Lowes reported better the expected earnings, but has forecasted a warning about future earnings.  Initially this created some positive momentum for Colorado Home Mortgage rates, but the momentum did not last too long.  The big news today and probably for some time to come is the anticipation of Microsoft and Yahoo merging together.  This will be huge for the market, and the indication so far, is that they will be able to complete the merger in the near future.  Colorado Home Mortgage rates have been affected by the positive news.  Stocks are up over 100 points and as investors see opportunity in stocks they tend to utilize funds from long term investments.  Pulling money out of bonds will cause bond prices to drop and in return increase Colorado Home Mortgage rates.  The trick here is to predict what the next 48 hours will bring.  It’s hard to say so I will lean on the conservative side and recommend LOCKING. 

Colorado Home Mortgage rates should still be at 5.75% and it appears the risk/reward for floating may not me in your Favor.  The big news tomorrow will be the PPI report which is an inflationary report.  If the numbers on inflation are bad, and the stock market maintains its current momentum, we will see Colorado Home Mortgage rates jump.  With oil still trading at an all time high I just find it hard to believe that we will not see some inflationary pressure in the market.  As I said before, it is just too hard to predict what will happen in the next 48 hours.  Now if we look over the next 30 days or so we are getting reports from a variety of source that seem to indicate that we will not be out of the woods for some time.  The negative trends in the economy may be around even longer then we expect.  If that is the case we should have a good summer as it relates to Colorado Home Mortgage rates.  It is the ups and downs that can cost you money, and that is why it is important to have someone on your side predicting market trends.  Please call me with any of your Colorado Home Mortgage questions.  Remember to check out www.coloradohomemortgageloan.net/news for more specific information on the reports already released and tomorrows PPI.

Colorado Home Mortgage rates improved today on the release of several poor performing economic data reports.  These reports reminded investors that we are still not out of the woods yet.  Our economic situation seems, at least for the moment, uncertain about immediate recovery.  Colorado Home Mortgage rates always do better during uncertainty.  We had a rough week last week as it relates to Colorado Home Mortgage rates and much of what was lost last week has found its way back into the market this week.  We will continue to support a LOCK recommendation around 5.75%.  Today 5.875% would be a no cost lock; where as 5.75% would still carry a small cost.  Let’s give it another day or so before making any quick decisions, it appears that the data coming out still has some room to improve Colorado Home Mortgage rates over the next day or so.  We will maintain a FLOAT recommendation through the weekend.  I will certainly advise a LOCK if something big happens, but tomorrow’s economic data will more then likely reflect a similar negative message being communicated by the reports today.

Go to www.coloradohomemortgageloan.net/news to get the details on the specifics of each report released today, for those who just want the basics this is the site to keep book-marked.  Colorado Home Mortgage rates will be impacted by tomorrow’s economic releases.  Housing starts and Consumer Sentiment are both on the clock tomorrow and both reports are expected to come in negative.  Consumer Sentiment is a no brainer, as a whole people still believe we are in a tough situation and whether it is political, economical or local the problems still remain the same.  People do not have confidence that our economy is in a state of recover and instead believe that tougher times are ahead.  This will be reflected in the story told in the Consumer Sentiment data released in the morning.  Consumer Sentiment readings that come in low normally indicates low consumer spending.  When this happens a safer investment portfolio makes sense which will increase the demand for Mortgage Backed Securities.  Long story short it will allow Colorado Home Mortgage rates to drop for a third straight dayJ  We do have one negative possibility that could move Colorado Home Mortgage rates back up a bit and we know them in the investment world as profit seekers (read my other blog) they could be the red herring on any large movements expected in rates in the next 24 hours. 

Finally, we have the housing starts report, which normally this time of year begins to gain momentum.  Builders typically build more in the summer however the problem here is supply.  Right now with so many homes on the market adding additional supply is not profitable, which signals that this report like the previous 7 housing starts reports should come in low.  The question is did the experts predict the housing starts report appropriately.  We will see.  The Mortgage Backed Securities market did close today with some nice gains and more importantly a consistent gain throughout the day.  This should have been reflected in some decent improvements for Colorado Home Mortgage rates.  I checked out several investors today and they are still a little conservative in their rate sheets so we have not seen all the Colorado Home Mortgage price improvements that I would have expected, which certainly means that FLOATING through the weekend should be a safe bet. 

The Last thing I will say is be careful not to allow yourself to be to heavily influenced by what you hear.  Look at the simple data and make your decisions on what you think the market is doing.  I am also easily influenced by what other people are saying.  I do not come up with all of this on my own, I read a lot to get this information out and the sources I read the information from will always push their personal opinions.  Heck my personal opinion comes out in every message I write.  I have had a strong stance that our economy appears to be in a recession and I have stuck to this for some time, but over the last three weeks we have had a few reports come out that seem to tell a different story.  Of course every expert on the planet has to have something to say about it and when you hear it enough you begin to believe it.  I bought into this as well, however today’s data came in pretty bad and unfortunately we will not know how close to a recession we are in until we are almost out of it.  Colorado Home Mortgage rates go up and down based on investor impulse and opinions on where the economy is heading and what the economy has to day today.  When they feel things are getting better for the economy, Colorado Home Mortgage rates suffer.  Likewise, when we fall on bad Economic times Colorado Home Mortgage rates drop.  Right now our economy is in a state where Colorado Home Mortgage rates should be at an all time low, but the simple fact is we have way too much data to sort through, which allows everyone to have an opinion.  Stick to the basic, and call me with your Colorado Home Mortgage questions.

Daniel