Colorado Home Mortgage Banking

The questions investors are asking themselves over the next few days will be whether to invest in Stocks or Bonds.  When the Stock market looks to be a better investment money will be pulled out of bonds and into stocks.  Likewise, when bonds look better investors will pull from stocks and invest into bonds.  Colorado Online Mortgage rates will rise and fall based on the volume demanded from the Mortgage Backed Securities market.  So far Colorado Online Mortgage rates have dipped a bit on positive corporate earning reported by CAT and Honeywell.  Both companies represent large industrial and manufacturing sectors in the market and both indicating higher then expected profit margins.  Investors quickly took the news and pulled money out of the Mortgage Backed Securities market and began investing in the Stock Market.  Colorado Online Mortgage rates will see slight increases today as a result.  CitiGroup reported a 5.1 Billion dollar loss in the 1Q but that too was seen as a positive sign in the market.  So far the S & P has gained about 200 points and there are no signs of this slowing down.  Report after report on corporate profits appear to be in line with expectations and the market looks as if we have the beginings of a recovery in place.  Who knows maybe I will be a believer soon, but right now it still is not enough.  Corporate profits though regulated heavily now are still reported from the companies prospective and the economic indicators are still signalling tough times ahead.  Colorado Online Mortgage rates however will be impacted daily on what the market releases.  This also means that if things get re-reported later or something drastic changes the current market sentiment felt between investors, Colorado Online Mortgage rates will not see those changes until it actually happens.  We are still at a 5 week high on interest rates.  This has me concerned that the end may not be in sight soon, based on what the market has been doing this week:-(  It will take some bad economic data to move Colorado Online Mortgage rates down and if Citi group reporting a 5.1 Billion dollar 1Q loss has investors excited nothing I can say will change what direction Colorado Online Mortgage rates will go.  I will stay the course and say FLOATING remains my recommendation, but the last time I saw this type of trend happen we had 3 1/2 weeks of Colorado Online Mortgage rate increases and the overall rates jumped up about .75% during this time.  My gut still says rates will improve, but the signs are say we may have a long way to go before that happens.  LOCKING will be up to you, and it may be a good choice if you are closing in the next two weeks.  If you are a risk taker and rates do indeed drop again in the next 3 to 4 weeks then Floating will be your option.  I would probably monitor things very closely next week, the real story will be told 4/30  when GDP is reported and the Federal Reserve Meets.  We will see a small preview on 4/24 when the Durable Goods report is released.  The Durable Goods report may be the exact time when things start to fall into place.  If the report sends Colorado Online Mortgage rates up we will probably be in for a tough couple of weeks.  Good luck and call me if you have questions.

Investors have been holding tight in anticipation of what today’s Corporate Profit reports will be.  Mortgage Backed Securities should see some nice gains if the profit reports come in below expectation.  Information on corporate profits have already leaked into the market and so far, the signs indicate that profits will indeed come in lower then expected.  Colorado Online Mortgage Rates should see some improvement later today.  Colorado Online Mortgage Rates released early this morning started off a little higher then expected.  Lenders in the last 3 days have taken an extremely conservative approach in offering their Colorado Online Mortgage pricing.  We are hoping that these lenders come to terms about where Mortgage Backed Securities are and reprice for the better soon.  I will continue to have a FLOAT recommendation, until something in the market indicates that rates will go up.  So far that has not been the case.  I am still a little baffled at the fact that Colorado Online Mortgage rates have gone up over the last three days.  The only reason I see for the rate increases is the amount of bonds being supplied into the market.  Over supply will always have a negative impact on Colorado Online Mortgage Rates.  To add to the over supply issue Citi Group announced just this morning that they were putting up another $12 Billion dollars in bonds to be sold on the open market.  This will have a negative impact with Colorado Online Mortgage rates.  The real question is what will impact the market more, bad corporate profits, or over supply of bonds?  Ultimately I believe that the negative press on Corporate Profits will prevail.  We will keep an eye on pricing today and will alert you of any major shifts. 

Some lenders today had a hard time reading the market and made a mid-day price change improving Colorado Online Mortgage rates.  Tomorrow we will be back to our old ways.  The focus again will be what kind of economic data will we have and how will it impact Colorado Online Mortgage rates.  We have a couple of Manufacturing reports coming out and some investors are already trying to get a read into what the numbers will be saying.  Reports started to come in late today that have investors forecasting some positive numbers in the manufacturing report due out in the morning.  This report will have a moderate impact on Colorado Online Mortgage rates and depending on the data will move rates either up or down.  So far this year just about every report released has shown signs that our Economy has not made any progress towards recovery.  Investors are grasping at what ever good news they see, which ultimatly could impact Colorado Online Mortgage rates.  This desperation will send any good news into a frenzy of speculation about our economy recovering, which will create an even bigger movement in the market.  This movement may move Colorado Online Mortgage rates up or down quicker then they would have on similar data in the past.  There are three primary economic sectors measuring activity in the market, manufacturing, non-manufacturing, and government.  Each of these sectors currently release economic data, all of them impacting Colorado Online Mortgage rates in one way or another.  Obviously the biggest mover in these sectors comes in the non-manufacturing sector which currently accounts for over 75% of all economic activity.  Though the Manufacturing reports do not carry the same weight, make no mistake their impacts will be felt.  If the news is positive we may see another overreaction in the market sending rates up for the rest of the week.  Colorado Online Mortgage rates may come out a bit higher in the morning in anticipation of the news.  If the ISM report on Business comes in lower then expected we should see rates improve yet again.  I have to be careful not to get pulled in by over analysing the data, as your Colorado Online Mortgage provider, I should remind you to keep it simple and monitor the economy as a whole.  We are still not out of the woods as it relates to bad economic news, and with the approach our government has taken to strengthen its control, my guess is that we still have some time to go.  I believe that we should continue to see some nice rates in the near future, but will also caution people not to wait to long to lock.  I have changed my FLOAT recommendation to a LOCK recommendation assuming you can get 5.5% fixed.  I Locked one of my clients today, and currently have most of my pipeline locked at that rate.  I have two investors currently offering that Colorado Online Mortgage rate, but if you are purchasing a property you will need to have an accepted contract to lock.  If you are refinancing we can lock at anytime, Remember 5.5% fixed is a good historically low rate and should be taken advantage of.  Until then good night.  Don’t forget to check out www.coloradohomemortgageloan.net/news for my 2nd blog.

We have had several economic reports come in today including GDP.  These reports will have an impact on Colorado Online Mortgage rates.  Much of the Economic Data released today; GDP, Personal Consumption Expeditures, Corporate Profits, and finally Jobless Claims, all came in right where investors had expected.  Initially Colorado Online Mortgage rates will probably increase on the news, mainly because investors that were previously concerned that the Economic news would come in worse then expected have begun to move money back into higher risk investments.  Those of you that were hoping Colorado Online Mortgage rates would drop over the next few days may not get the results you were looking for.  Colorado Online Mortgage rates will probably increase slightly but overall should stay pretty much in line over the next few trading days.  The only thing that will create any strong movement in the Mortgage Backed Securities market will be how bullish its investors feel.  With all that said lets continue to look at the facts: the economic numbers show that we remain at our lowest point in the market since 2001 and at this time we show no signs of immediate improvement.  This will ultimately be good for Colorado Online Mortgage rates.  GDP came in with an increase of .6% which still does not allow us to define the market as a recessionary market, but it is about as close as it can be.  To be considered in a recession we would need GDP to have two quarters in a row with negative GDP increases.  Another important economic report coming in today was the PCE report.  PCE came in lower then expected at 2.0% not 2.5%.  PCE or Personal Consumption Expenditures measures inflation and typically when inflationary reports come in better then expected Colorado Online Mortgage rates will decrease.  So far today that is not the case, but in the long term based on today’s results Colorado Online Mortgage rates should fall back in line and price decreases should be seen as early as late next week.  For now my recommendation remains as a FLOAT, but use caution, we are definetly in a gambling mind frame.  So far Colorado Online Mortgage rates have increased by .125% depending on the lender, if investors react like lemmings we may see rates move up even higher in the short run.  However, it should not take long for these investors to see that a safe investment like Mortgage Backed Securities will still be better then a bullish approach to the stock market.  Don’t for get to check out: www.coloradohomemortgageloan.net for additional information.

Daniel

Today seems to be starting off nicely for your Colorado Online Mortgage provider.  I have written many Colorado Online Mortgage post talking about the impacts of bad Economic Data on Mortgage Backed Securities.  Today the Durable Goods report was released a day earlier then I had expected.  The Economic data from Durable goods came in considerably lower then what was expected.  This will be good news for Colorado Online Mortgage rates today and should be a signal of whats to come.  Durable Goods data showed a reduction of 1.7% versus the .7% which is what investors were expecting.  This is yet another sign that we have entered into a recession.  We can debate whether we are in a recession or not all we want but the economic data does not lie.  This is good news for Colorado Online Mortgage rates because bad economic news pushes interest rates down as demand for mortgage backed securities increases.  Those that decided to gamble should see rates improve today and if the economic data continues on this trend we will see rates get even better towards the beginning of next week.  I just took a look at Colorado Online Mortgage rates today and we are starting out exactly where we left off yesterday, however I do expect Colorado Online Mortgage rates to improve by .125% before the day is done.  There is one other area that we must monitor and that is the supply of bonds being offered in the market.  When ever a large lending institution releases a portfolio to be sold in the securities market it creates a temporary over supply of Mortgage Backed Securities.  If these MBS do not sell quickly then the price on these investments drop, which will have an inverse relationship with Colorado Online Mortgage rates.  I bring that up because today we had the release of 1.2 billion dollars in newly orginated FHA Jumbo loans  to the market, luckly we have had several investors in the Asian markets jump on the opportunity which help avoid any interest rate increases due to over supply.  My recommendation today will be to FLOAT.  I will let you know as soon as possible when GDP figures are released. 

There was a lot of activity today with Mortgage backed securities.  We saw several lenders giving us updated pricing allowing our Colorado Online Mortgage options to improve throughout the day.  As bond prices fluctuated today I felt it necessary to point out some key information to pay special attention to.  As a Colorado Online Mortgage company I have often written about the phenomenon known as breaking through the pricing floor and ceilings at any given price point.  These price points are easily monitored and often over looked in pricing Colorado Online Mortgage options.  Lets stick to the basics when bond prices increase there is an inverse relationship between the price of a bond and the interest rate being quoted by your Colorado Online Mortgage company.  As your Colorado Online Mortgage company your rates will be less when Mortgage Backed Securities are up.  The opposite is obviously true when Mortgage backed securieties are down then Colorado Online Mortgage rates are up.  You might find it amusing that I tend to use certain key terms over and over, please bear with me my web master has forced me to talk a certain way, try to work through it.  Ok lets get back to the pricing floor and ceiling discussion, as bonds move throughout the day they tend to move very quickly between certain price points.  Lets use a basic example of $100 bond it may increase to $120 and as low as $80 without warning and with ease.  This will cause Colorado Online Mortgage companies to price out up or down depending on the bond price.  However when the bond hits that $80 mark or the $120 mark the price of the bond hits a barrier this barrier in the Colorado Online Mortgage world will be referred to as the ceiling and floor of the bond.  If some type of economic activity forces the bond through these barriers then a new floor or ceiling comes about.  Now you are probably asking yourself how that will impact your Colorado Online Mortgage now, well today we saw 5.5% coupon bond hitting that pricing ceiling.  If the 5.5% coupon bond continues its course and breaks through the ceiling we will see rates improve even more.  Beware of the Ferderal Reserves they are expected to decrease rates by 1% which is poison to mortgage backed securities, luckly investors are prepared for it.  If you need any additional questions answered please provide comments for your local Colorado Online Mortgage Broker:-)

Daniel