Colorado Home Mortgage Banking

Mortgage Backed Securities were sold off in mass numbers overnight in the foreign markets, sending today’s opening numbers right into the cellar.  Colorado Home Loan rates started the morning off about .25% higher then yesterdays closing Colorado Home Loan rates.  We are now seeing Colorado Home Loan rates hitting 6.0% which has me a bit concerned on where rates will finally cap at, before we begin to see some relief.  Its getting harder and harder to tell people to floating especially since rates continue to rise.  With that said we should keep one thing in mind, and that is as much as rates have gone up over the last 3 weeks rates still remain right around 6.0%.  6.0% Colorado Home Loan rates are still better then our 12 month peak points and continues to be a respectable rate.  I don’t want to alarm anyone right now it just appears that the market is experiencing instability.  With this instability investors are acting on fear that the Mortgage Backed Securities market will some how loose its current credibility.  The fear should soon dissipate from Mortgage Backed Securities and confidence to buy will return as investors begin seeing losses within the equities markets.   We need to remember that the market will respond accordingly to the economic data being released, even though we are not seeing it reflected in the price of Colorado Home Loan rates today.  Historically Mortgage Backed Securities have had their movements primarily dictated by economic reports released through out the month.   This does not appear to be the case now we what we are seeing in today’s market is the exception.  We will get back to our old predictability soon, especially as we get more and more negative economic data.  As expected, Consumer Sentiment came in at a 30 year low, hitting the lowest Consumer Sentiment reading since 1982.  Consumer Confidence is expected to come in just as low, which will be the push we need to have Colorado Home Loan rates moving back into the right direction.  What is disappointing about what we are seeing in the market is that these reports should have moved rates considerably lower today, but instead will only stop Colorado Home Loan rates from increasing.  We should see the market find the stability it needs over the next week or so at which point we should see rates begin to fall.  Stay tuned and call me with any of your Colorado Home Loan Rate questions.

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.  

Two economic reports came out today both coming in worse then expected.  Colorado Home Mortgage rates should see some nice improvements today.  The much anticipated Unemployment figures are out and the numbers were higher then expected.  I have been saying for days that a couple of bad economic news reports should finally be the wake up call needed to push investors back into Mortgage Backed Securities.  We are seeing a feeding frenzy this morning and Colorado Home Mortgage Rates should be better by .25% this morning.  I normally don’t make LOCK recommendations on a Friday, but heck if investors over react we may want to lock in today.  I will keep you posted on when Colorado Home Mortgage rate sheets are released.  Unemployment came in at 5.1% the highest number in 5 years for any given quarter.   The Employment Situation report released today sent more negative information into the market as it relates to overall employment data.  These two reports combined, will definitely be market movers and will send Colorado Home Mortgage rates down.  If you waited to lock, then your bet paid off.  How far Colorado Home Mortgage rates will drop is the main question today.  Don’t hold out to long LOCKING in a rate will only be guaranteed when you actually LOCK.  I am putting up a LOCK recommendation for anyone being quoted a full .25% lower then yesterday, however floating may not be a bad risk for those who want to wait until Monday or Tuesday of next week.  If we continue to get bad economic data early next week, we may see some impressive drops with interest rates:-) Stay tuned and thank you for having trust in us.  Just as I was hitting the button to post this blog rates came out and as expected .25% lower already.

Daniel