Colorado Home Mortgage Banking

Colorado Mortgage rates seem to be improving a bit today; however it is not enough to make any difference on current long term interest rates.  Consumer Sentiment hit an all time low coming in just over 50.0.  This is the lowest Consumer Sentiment reading yet, and is a strong signal that consumers want more action in the economy.  Colorado Mortgage rates typically will improve on any information related to negative economic news.  Consumer Sentiment is an economic report that shows how consumers see the market and what they believe our economic outlook will be in the near future.  Today’s reading was very low and is the lowest report every recorded in Consumer Sentiment history.  Right now it appears that people have very negative opinions on where the economy is and what’s to come.  As a result consumers are less likely to spend creating even more obstacles in the economy. 

Colorado Mortgage rates were also impacted by the lack of volume being traded in the Mortgage Backed Securities market.  Most investors are standing by in anticipation of what will come from the FOMC meeting currently taking place.  The Federal Open Market Committee plays an important role in determining which direction Colorado Mortgage rates go.  The Federal Reserve board will be fighting a tough battle today behind closed doors.  They will certainly be discussing which issue to address in the coming months, inflation or economic instability.  Both work inversely to each other and the tools used by the Federal Reserve will yield opposite results depending on which direction the Fed’s chooses.  Colorado Mortgage rates will have a bad reaction to anything related to inflationary risk.  If the Federal Reserve takes steps to decrease inflation in the market, Colorado Mortgage rates will go up.  This is interesting because high inflation is bad for Colorado Mortgage rates.  So why does actions that lower inflation cause Colorado Mortgage rates to rise?  The market views this in the short term as a potential risk that inflation is already to high.  This makes long term investments less valuable to sell.  In the short run, Colorado Mortgage rates will increase due to concern related to high inflation risk.  If the Federal Reserves focus turns to Economic stability and nothing is said about inflation, we will see Colorado Mortgage rates improve.  This action will send a message to the investment world that economic stability is weak and that a safe long term investment may yield a better return.

Colorado Mortgage rates will have plenty of economic data released tomorrow which will add to any movements caused by the FOMC.  Durable Goods and New Home Sales will both be apart of the information investors will need to digest in order to make their decision for what action to take in the market.  You can go to www.coloradohomemortgageloan.net/news to get more information on these reports and what is expected to happen.  In short investors are expecting durable goods orders to increase from last month, which is typical in the summer months.  A negative reporting number for Durable Goods will allow Colorado Mortgage rates to drop.  New Home Sales on the other hand is expected to drop again to a new 5 year low.  If we see anything lower then what is expected we should see Colorado Mortgage rates improve again.  I will give you my expectations on these reports at my other site.

In Conclusion the real question is to Float or Lock your Colorado Mortgage rate.  To determine this you need to decide how risk adverse you are.  If you like risk and like the rewards that come from risk, you will need to float your Colorado Mortgage rate today.  The FOMC is split on what direction they want to go, but Bernanke holds the final card and he is clear that the Economy will be his first and strongest focus.  I believe that this will come out in tomorrow’s information and short term interest rates will go untouched.  Keep in mind I am right about 85% of the time.  We will have to wait and see.  I also believe that both economic reports due to be released will come in lower then expected, which is one more added incentive in driving Colorado Mortgage rates down a bit latter this week.  For those that don’t like risk, you should have already locked, if not you have about 2 hours to get this done.  Colorado Mortgage rates will jump up if anything is released from the meeting notes indicating fears of inflation.  Heck the Federal Reserve members may take action that states the focus is for Economic stimulus, but talk about inflationary issues.  This will happen so that they can try and tackle two fronts both inflation and economic growth.  The reason I don’t believe this will happen is, it is counter productive as it relates to one issue or the other.  If the board appears to be split on what action to take you might have some members yelling inflation even though action was not taken to combat the economic stimulus issues.  Finally, the summer months are normally big home sale months and currently the consensus for new home sales appears to be at a record low.  The consensus may be set a bit to low and if New Home sales beat expectations it could send the wrong message about our economic condition.  Strong housing numbers typically insinuates an improving market and having our consensus set too low opens the door for housing numbers to beat expectations.  Even if expectations are beat tomorrow anything close to expectations would still be a negative sign for our economy.

Please give me a chance to work with you and let us provide you with the right Colorado Mortgage option.  We are committed to bring you the best Colorado Mortgage service in the market and look forward to working with you.  Please call me anytime you can talk to me directly.

Looks like we had another good day for Colorado Home Mortgage Refinance Rates.  At this point we are preparing for a number of Economic reports that will impact the market over the next couple of days.  Colorado Home Mortgage Refinance Rates appear to be making up some ground lost in the last three weeks.  We are still looking at a rate of 5.875% for Colorado Home Mortgage Refinance Rates, but should see this drop by May 1st.  There is a pricing floor to break through before we see any real movements with interest rates.  This current floor appears to be set at 5.875%, and we are quickly seeing the barrier break, which means rates should drop down to 5.75% very soon.  Once the barrier breaks, interest rates will move quickly, and we may see enough activity in the data to lower rates back to our 4 week low.  We will keep our fingers crossed and will continue to report the direction we are moving. 

Consumer Confidence will be reported on tomorrow which should come in similar to Consumer Sentiment.  If this happens we will see another good day for Colorado Home Mortgage Refinance Rates.  Looking at the projections I do have a little bit to be concerned about.  Consumer Confidence has been trending higher then Consumer Sentiment this year. Experts are projecting that Consumer Confidence will actually come in lower then Consumer Sentiment this month.  This raises a bit of a red flag, in the sense that expectations are set too low, leaving room for Consumer Confidence to beat current expectations.  Historically when expectations in economic reports come in higher the projected Colorado Home Mortgage Refinance rates suffer.  Though this is a concern, I would not be too worried; we are still in for some rough economic news.  We expect the data reported tomorrow to be good for Colorado Home Mortgage Refinance Rates. 

Wednesday we will have our big end of the month numbers for GDP, PMI, and Federal Open Market Committee notes.  All you need to know is that we have enough data to break through the pricing floor of 5.875% which should put us back in line for a possible lock recommendation.  I will be making this recommendation at 5.75%.  If you want to gamble gambling may pay off.  Holding out another 10 days or so may get us the 5.5% we have been so desperately trying to get.  I will report more on Colorado Home Mortgage Refinance Rates tomorrow.  Be prepared to Lock quickly in the mean time we still have a FLOAT recommendation on your Colorado Home Mortgage Refinance Rate.  I will be explaining a little bit about the reports being released in the next day or two on www.coloradohomemortgageloan.net/news Sorry about the late post today, stay tuned after 1pm tomorrow for information regarding Consumer Confidence.  In the mean time call me with any of your Colorado Home Mortgage Refinance Rates questions:-)

I guess my philosophy on never locking on a Friday has been pushed right out the Door.  Colorado Home Mortgage Loan rates should see improvements today signalling the third straight Friday LOCK recommendation.  Just when I think I have everything figured out I am reminded that like everyone else in the market I am reactive.  Consumer Sentiment is a measurement used to monitor consumers feelings on how the economy is moving.  A low Sentiment indicates fear and concern about the current economic situation.  When Consumer Sentiment is high the exact opposite is felt.  What does this mean for investors? How does this impact Colorado Home Mortgage Loan rates?  Simple, when people feel the economy is moving in the right direction they are less likely to save and more likely to spend.  Investors tend to move funds out of safe investments like Mortgage Backed Securities and into high risk investments.  The opposite is true when Consumer Sentiment is low.  Low Consumer Sentiment drives up the demand for Mortgage Backed Securities and in return drives up the price.  The inverse relationship between interest rates and prices can only mean Colorado Home Mortgage Loan rates will drop.  I am implementing a LOCK recommendation for today, especially if we have a price ALERT for the better later this afternoon.  Next week may be a tough week for rates.  We have a variety of inflationary reports coming out and I have stated many times before that inflation news tends to be the biggest mover for Colorado Home Mortgage Loan rates.  The preliminary reports so far indicate that we have inflationary pressures, but that should not be a surprise.  We will probably see some increases in pricing come Monday just out of anticipation of Tuesday and Wednesday inflationary reports.  If you are a risk taker and believe that the numbers will be as expected or lower, then you will see rates drop nicely by Thursday.  If not the increases seen in Colorado Home Mortgage Loan rates next week will be out right uncomfortable.  I will go out on my own and make a risky prediction, I believe inflation will be in line with expectations.  The reason why I believe this (Remember it is simply my opinion) is that much of the inflationary numbers being calculated comes from energy prices and that alone does have some negative impacts, however, with the economy moving as slow as it has overall pricing has not increased.  Heck what are homes doing (different indicator but you get the point)  People drive prices up through demand and right now with Consumer Sentiment as low as it is do you think people are buying or saving for a rainy day.  If people are saving then demand is low and if demand is low what happens to prices????  I will still leave the LOCK recommendation in place today on Colorado Home Mortgage Loans, but if you want to let it ride next week may prove to be a good week.