Colorado Home Mortgage Banking

Colorado Online Mortgage Rates may have hit its bottom end for the week.  I have had a Colorado Online Mortgage lock recommendation in place all week and no matter when you locked this week your Colorado Online Mortgage rate should have been pretty good.  We have had a lock recommendation at 6.0% and that is exactly where we have been locking in our clients. 

A variety of economic reports come out today, but none of these reports are real market movers.  Consumer Sentiment, which came out today, is used to gain insight into possible future consumer spending. It is almost identical to consumer confidence but it has two readings per month, preliminary and final readings. The consumer expectations portion is used for the leading economic indicators index.  The data pulled from this report gives investors a good indication on consumer spending behavior.  Colorado Online Mortgage rates tend to do a little better when spending predictions are down.  Likewise Colorado Online Mortgage rates tend to go up when Consumer confidence is high.  The reason Colorado Online Mortgage rates are affected is that investors believe that if spending is high, Corporate profits should also be high.  When profits are high investors tend to invest more in equities (stocks), which decreases the money available for bonds.  The movement seen in Colorado Online Mortgage Rates greatly depends on how high or how low the demands for bonds are.  Today’s report came in near historic low levels, but not as low as expected.  Colorado Online Mortgage rates should have reacted negatively, but so far it appears that the bond market is holding its own.

Another Economic Report released today was the current Trade Balance figures.  This report does not impact Colorado Online Mortgage rates severely but investors do look at this report for potential investment decisions.  The volatility in the monthly trade balance can play an important role in forecasts of GDP. Net exports are a relatively volatile component of GDP, and the trade report provides early clues to the net export performance each quarter. There are many complex links between the Trade Balance and MBS markets, and some work in opposite directions, so the net effect is difficult to predict.  Because of these inverse relationships it becomes a good report to monitor.  I monitor this report to help predict future Colorado Online Mortgage Rate movement.  However over the last year or so I have not seen any major movement, and normally headlines take center stage over this report as it relates to Colorado Online Mortgage Rates.  The Trade Balance did not come in as poorly as expected so we should have seen a little bit of negative movement in the market for Colorado Online Mortgage Rates.

The Final piece of data comes from the Headlines as the Stock Market appears to be plummeting into its worse closing in 3 years.  Investors see this as a very negative sign and they tend to reinvest in safer investments like bonds.  Colorado Online Mortgage rates will have very positive reactions to this, and did so this morning.  However, over the last couple of hours we have seen a drastic negative movement in the bond market as well.  I am not seeing exactly why yet with the data sources I have, but can only assume that we are seeing major news leaking into the Market that has investors scared to invest.  Colorado Online Mortgage rates will come up a bit if this trend continues through today.  Fannie Mae and Freddie Mac are the biggest two mortgage companies in the U.S. and account for about 50% of the total mortgage business.  Over the last 24 hours major fears have hit the stock market that these companies may have to file for Bankruptcy protection.  This is probably the biggest influencer in the Colorado Online Mortgage market, and has been the reason for the drastic 500 point drop in stocks over the last 24 hours.  The Federal Reserve came out late yesterday to state that they would intervene and will not allow these companies to fold.  This is good news for investors, but because of the magnitude of influence these companies will have on the financial markets it is clear why so many investors are running scared.  This should be a really good thing for Colorado Online Mortgage rates, but since it deals with companies tied to bonds it is playing havoc on both markets. 

I still believe that Locking your rate today will be the best Colorado Online Mortgage decision you make.  If you LOCKED a few days ago and lost out on the 1/8^th of a point you might have saved on your Colorado Online Mortgage Rate, don’t be alarmed you still got in at the right time.  The writing is on the wall and locking would be a good idea.  Please check out my other site www.coloradohomemortgageloan.net/news for information about how Colorado Online Mortgage rates are established.  Until then have a great weekend and give us a chance to earn your businessJ

Daniel