Colorado Home Mortgage Banking

Colorado Home Mortgage blogs can sometime be dry and long so I will summarize by blog in the first paragraph and if you want more detailed information then I will encourage you to read on for more information.  Colorado Home Mortgage rates have hit the LOCKING window we have been waiting for.  Today we can get the 5.75% without any points which means LOCKING is the way to go.  I have several Clients that will have a chance to get LOCKED in today.  We have several influences in the Market that can have negative effects on Colorado Home Mortgage rates.  You can gamble, but the risk reward will not be worth it.  Jobless claims did come in better then expected and The Bank of England did not raise rates.  Nothing out of the ordinary, but Colorado Home Mortgage rates appear to be doing what we want.

Jobless Claims came in today lower then expected.  The initial jobless claims were expected to be 375K but actual data indicated that it was only 365K.  Normally this would have caused Colorado Home Mortgage rates to go up, but so far the market is holding strong.  In fact we are seeing slight improvements, which means we may want to look at locking your Colorado Home Mortgage rate soon.  I will be watching the market very closely this morning and may be calling you for a LOCK recommendation. 

The Bank of England held their short term interest rates right where they were.  It appears that the board in Europe has taken a strong approach locally to fight inflation.  Our Federal Reserve System seems to be more aggressive in their actions.  This will make foreign bond investments more profitable the U.S. investments, which may cause investors to start buying internationally versus here at home.  Regardless the news was not unexpected and has kept its influence out of the market so far.  I have reported several times in the past about the pricing gap between the 10 year treasury and the 30 year 5.5% fixed bond.  These two financial instruments tend to trade in similar circles and move up and down at the same rate.  Over the last few months there appears to be a larger then normal gap between these two securities.  In short, Treasury’s are trading higher then its partner the Mortgage Backed Security.  Colorado Home Mortgage rates should be slightly better assuming that these two financial instruments trade where they are supposed to.  This may explain some of the improvements we are seeing lately.  I will be looking at several banks today and making some assessments on the loans that will be closing soon.  Those Colorado Home Mortgages closing in the next couple of weeks should probably be LOCKED today.  We can get the 5.75% and LOCKING is my recommendation. 

If you are a risk taker then we may have a few more days where rates can improve.  It may even drop us to the 5.5% range, but I will not be recommending client to wait to long.  Here is why I have issues with waiting and why LOCKING your Colorado Home Mortgage rate is so attractive.  Investors have been overly cautious in their projections and though the economic reports are still bad they are all coming in better then projected.  Better then projected economic data causes problems for the Mortgage Backed Securities market.  Colorado Home Mortgage rates will go up as bond prices drop.  Investors are getting their confidence back in the Stock Market and this will cause unwanted pressure in the Bond market.  Another big issue is oil.  I have talked about this over and over so I will make it short.  Oil causes inflationary issues, which again is bad for Colorado Home Mortgage rates.  I don’t see any other solution to slow down inflation except for drastic decreases in the price of oil.  I don’t believe that will happen anytime soon.  All the negative influence in the bond market seem to be there and when we have a small window of opportunity to LOCK a good rate then LOCKING will be my recommendation.  I set the bar at 5.75% and we will have several people locked in today at that rate.  Call me with your Colorado Home Mortgage questions and check out www.coloradohomemortgageloan.net/news for in-depth economic data information.  Thank you for reading.

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

A real rollercoaster ride was experienced in the market today.  Colorado Home Mortgage rates started the day off great, coming in line with our Lock recommendations set earlier in the week.  1st thing in the Morning, I went into our pipeline and focused on locking loans for clients looking to close over the next week or So.  We saw a lot of things impact the market, but you can read about that at www.coloradomortgagebanking.com/news.  Right now we are maintaining a FLOAT recommendation and we expect rates to fall tomorrow as unemployment is announced.  All of the Job indicators over the last three weeks show that the unemployment rate should come in high.  This higher unemployment rate will cause mortgage backed securities to gain momentum in its pricing sometime tomorrow.  In return this should send Colorado Home Mortgage rates back down.  We are hoping to get the same rates we saw earlier today.  The Mortgage Backed Securities did finish the day better then where the market closed yesterday.  This tells me that rates should have been slightly better today then yesterday, but this is not the case.  Instead the rates today finished worse then yesterday meaning that the bank currently holds the rate at a price point that indicates extreme caution.  We believe this took place to protect the investor from any market risk experienced earlier in the day.  Basically they are gun shy from having to display any rates that might produce less the favorable profitability positions in the event of a major sell off which investors witnessed today.  This will be adjusted tomorrow and Colorado Home Mortgage Rates will open the market better tomorrow making it a must float situation ending today.  Stay tuned and call me with any Colorado Home Mortgage questions you might have.

Colorado Home Mortgage rates appear to handling the news well with the recent Fed Cut announcement.  The market expected a .25% rate reduction and today they got just that.  Investors were a little gun shy on buying Mortgage Backed Securities and once the FOMC reported to the public Mortgage Backed Securities took off.  Colorado Home Mortgage rates appear to be having a real good day.  Stay tuned tomorrow for more Colorado Home Mortgage updates.

Colorado Home Mortgage Loan Rates saw its improvements continue today.  Consumer Confidence came in low but it did come in as expected.  Normally when expectations are met Colorado Home Mortgage Loan Rates begin to rise.  This does not seem to be the case in the market today.  Colorado Home Mortgage Loan Rates did shift lower today, but not enough to break through the current pricing floor.  The market has shown signs that a break through will happen, but it will take the variety of economic reports coming out tomorrow to make any real lasting effects on the Colorado Home Mortgage Loan market.  We can now get 5.75% for anyone looking to take the risk out of the market locking today may pay off.  Personally my recommendation remains as a FLOAT.  We believe the information being released tomorrow will be positive for Colorado Home Mortgage Loan Rates, and we are hoping that this will carry over the next couple of weeks.    Stay tuned tomorrow for breaking news on Colorado Home Mortgage Loan Rates, each report will impact the market differently and I will keep you posted.  Best of Luck and call me any time.

Retail Home Sales data came out today and so far the information has not surprised anyone.  Retail Home sales are definitely at a low point and the market continues to responded as expected.  Colorado Home Mortgage rates have improved for the third straight day.  Now it is up to the lenders to release Colorado Home Mortgage rates that fall more in line with what the market is showing.  I have had a lot of questions asking me how the market prices out Colorado Home Mortgage loans, versus what the borrower actually pays for their Colorado Home Mortgage.  There are two Colorado Home Mortgage markets to obtain a loan from, Retail markets and Wholesale markets.  Both these markets work the same as it relates to the type of Colorado Home Mortgage loan, the only difference is availability and price.  Retail organizations like Wells Fargo direct, First Horizon, and any other local banking institution only offer portfolios tied to their individual lending criteria.  They will also charge a premium of 2% before any origination cost are added.  This premium is added to the 5.5% coupon rate found on the Mortgage Backed Securities market.  So in short if the 5.5% coupon market is selling at 100.00, which represents the coupons original price.  When this occurs the coupon is said to be selling at PAR.  Your Colorado Home Mortgage Rate would be 5.5% with no one in the business making any premium unless origination and other charges are added to the loan.  Regardless of what origination or fees are charged the retail side of the house will always charge a premium that comes from the rate.  In order to get the 5.5% coupon bond at 102.00 retailers will charge a higher rate to obtain the 2% premium Retail shops price in to sell their Colorado Home Mortgage rate.  Retailers will offer you a Colorado Home Mortgage rate around 6.25% or 6.5% to obtain this premium.   In the Whole sale side (which I am a part of:-)) you will get the rates directly from the Mortgage Backed Securities market.  The Lender offering the Mortgage Backed Security will still put a premium on these Colorado Home mortgage rate, but instead of 2% it is 1%.  This means that the 5.5% coupon bond will price at 101.00 which means we can offer you a better Colorado Home Mortgage rate.  Normally about 5.75%, again based on today’s numbers.  This is a full .5% better then retail. 

So the real question here is why are we not seeing all of the savings we should be seeing in the market?  Well the market has just come off of inflationary reports and inflation is very bad news for Colorado Home Mortgage rates.  These numbers did come in as expected, but lenders will typically wait a few days to make sure that the inflation risk has jumped out of the Colorado Home Mortgage market.  Instead of pricing in 1% which is typical they currently have priced in about 1.25%.  This should find its way out of the market the next few days.  Retail shops have it even worse with about 2.25% currently priced in.  We will continue have a FLOAT recommendation for Colorado Home Mortgage Rates.  All signs show that rates are getting better and we should continue to hold out until the market tells us something different.   As usual call me with any of your Colorado Home Mortgage questions.  Good Luck and Stay tuned

Colorado Home Mortgage rates are heavily influenced by the economic data released on a regular basis.  The data released by a variety of reporting agencies indicate the direction and current status the economy is in.  These reports are not released everyday and from time to time we actually have a 3 or 4 day lull.  Colorado Home Mortgage rates have a hard time reacting to the lack of data, so in times of light reporting, Investors for Mortgage Backed Securities look to the Headlines for market moving information.  Colorado Home Mortgage rates will be impacted by financial information coming from the stock market.  This information will be scrutinized by investors almost as much as the economic data itself.  Before I get into the headlines, Colorado Home Mortgage rates today saw an improvement from late last week.  We will be keeping our FLOAT recommendation at least for now.  So far everything in the MBS market is indicating improvements,  we may even see a mid day PRICE ALERT: for the better.  I have said many times that investors tend to over react and I believe that this took place last week.  Hopefully we did not have anyone locking in last week.  Those that waited will more then likely see thier risks pay off in lower Colorado Home Mortgage rates.  We will need to stay tuned to April 24th.  We will have the durable goods report coming out and though this report in itself does not make a big impact on the market, it will make its mark.  Colorado Home Mortgage rates will feel the impact because of the lack of data currently seen in the market.  Durable goods will be the 1st big economic report in 7 days and Mortgage Backed Securities will certainly react to the data.  In the mean time here are some of the headlines currently making its way around the market:

Bank of America reported a Profit decline of 77%.  This Profit decline came in credit losses and write downs.  Normally this would be a good sign for Colorado Home Mortgage rates, but Bank of America represents a big part of the mortgage business, and confidence will be low.  Colorado Home Mortgage rates will react neutral overall to this news.  Oil continues to trade at its highest price point ever.  This price point causes some concern for Mortgage Backed Securities, because it signals bad inflationary pressures.  These inflationary pressures cause bonds to be devalued which in return causes Colorado Home Mortgage rates to rise. Finally, we are seeing more analyst and economist predicting that future GDP reports will show that we are heading into a recession “Wow that’s a surprise”  The number of experts reporting this data has increased over the last few months and these numbers represent a similar trend reported in the 2001 recession.  Colorado Home Mortgage rates will respond very well to recessionary pressures.  These pressures will come out in the economic data being reported.  We have our next GDP report on April 30^th.  April 30^th will be a big day and so far preliminary information indicates that the reporting will come in lower then expected, which in return will give Colorado Home Mortgage rates the help it needs.  So we are back to my initial recommendation which is to FLOAT your Colorado Home Mortgage rate for now.  Call me with questions, if you have more time to read go to www.coloradohomemortgageloan.net/news with more information.  

It will be an interesting day in the Mortgage Backed Securities Market.  Colorado Home Mortgage rates will certainly go up today.  The question will be how much will they go up? and What should we expect from tomorrows inflationary reports?  If you take look at the numbers, Core PPI came in right as expected which is producers costs excluding the volatile Food and Energy component.  This by itself would have actually been good for Colorado Home Mortgage rates.  The negative influence right now in the Mortgage Backed Securities market comes from PPI numbers that have food and energy included.  It is no surprise that this came in negative.  The problem is that it came in much higher then expected sending  negative inflationary signs though the market.  Colorado Home Mortgage rates will certainly go up.  This will be a tough week for those that don’t understand to forces that move the market.  People may want to LOCK in fear that rates will not stop going up.  Today will more then likely be a preview of whats to come for tomorrow.  It will be a tough couple of days.  I am still recommending a FLOAT at this point.  It is a risk, but Colorado Home Mortgage rates this week may have you locking at a high point and that is never my intention for anyone.  Remember that 1/2% on a $200,000 loan translates to about $75 more a month and that is what you will be putting on the line if you Float your Colorado Home Mortgage rate and you end up locking at a higher rate.  At this point rates should go down again when reports start showing what the economy is doing as a whole.  Inflation was expected to be higher today, but the light at the end of the tunnel through all this was that inflation appeared to be right in line if you exclude energy.  I believe that rates should drop again towards the end of the week, but stay tuned and if you need to lock let me know and I will get you locked in.  Have a great day.

Retail sales numbers were released today and for the moment it appears that it has not impacted Colorado Home Mortgage rates for today.  The Retail Sales Index measures the total receipts of retail and food sales. Retail sales include durable and non-durable merchandise sold and services and taxes incidental to the sale of merchandise. Sales are often viewed ex-autos, as auto sales can move sharply from month-to-month. It is also important to keep an eye on the gas and food components, where changes in sales are often a result of price changes rather than shifting consumer demand.  So how does this impact Mortgage Backed Securities, and more importantly Colorado Home Mortgage Rates?  Simple, if and when the economy reports negative news, Colorado Home Mortgage Rates drop and Mortgage Backed Securities increases. 

Looking at the Market so far today Colorado Home Mortgage Rates have moved up and down slightly over the last two hours, but have not made any major movements.  In fact Colorado Home Mortgage Rates should have started the day a little better because of where the market closed on Friday.  The real show stopper this week will be the two inflationary reports due out Tuesday and Wednesday.  This report will report on what inflation rates were for the month of March.  Its hard to give an unbiased opinion on what I think the inflationary numbers will be, because I have been reading nothing but negative press on what experts expect.  Colorado Home Mortgage rates will most definitely be impacted one way or another in the next two days, the question is which way?  I believe that inflation will report right in line with expectations.  This will be influenced heavily by the cost of energy.  If you are a risk taker FLOATING will pay off, if you just want to sleep well tonight, then LOCKING will be recommended today.  I am implementing a high risk FLOAT recommendation.  Colorado Home Mortgage Rates will see some nice improvements if and when inflationary numbers report in line.  Now keep in mind we have two inflation reports to be concerned about this week and even if the numbers come in good for Colorado Home Mortgage rates tomorrow, the market will not react until Wednesdays reports.  If you want to know the rational for why I believe inflationary numbers will report in line with expectations read my blog on inflation posted a few days ago.  Colorado Home Mortgage rates should remain in line today in anticipation of whats to come.  I will keep you posted.  God bless and have a wonderful day:-)

Colorado Home Mortgage rates slipped a little today as compared to Friday’s lows.  Investor used a conservative pricing approach when Colorado Home Mortgage rates were released today.  TPG offered WAMU a $5 Billion dollar bail out to help WAMU’s concerns of a take over by JP Morgan.  This sent stocks up first thing this morning, and had Mortgage Backed Securities looking less then ideal.  Colorado Home Mortgage rates reflected this change first thing this morning and has remained at that level through out much of today.  No major economic reports to speak of, limiting the activity in the market.  When volume is low pricing remains stagnant.  Rates should look very similar going into tomorrow.  At last glance Mortgage Backed Securities appeared to be on the rise.  If we have any disappointing news in the next 24 hours rates should move back to Friday’s lows.  If we have favorable news we probably will not see to much of an increase due to the conservative approach already being taken by investors.  FLOATING today for your Colorado Home Mortgage loan will not be a bad risk,  if you are closing in the next week or so LOCKING may take the risk out of the investment.