Colorado Home Mortgage Banking

I am still amazed at all the activity from yesterdays Colorado home loan markets that sent rates soaring.  The Dow was up over 400 points, but the market did reset today and the Colorado home loan market stayed pretty steady.  Lenders were quick to react early on, sending Colorado home loan rates up.  The 5.5% coupon bond which is the primary bond traded in the market closed the day up causing lenders to reprice yet one more time but this time Colorado home loan rates got better.  Rates were not as good as early on yesterday, but they were still very reasonable.  The Federal Reserve chairman spoke about leaving the door open for continued interest rate reductions in order to stimulate the economy which had many Mortgage Backed Security investors paniced about inflation.  We should all know by now that inflation sends Colorado home loan rates shooting up and it goes to show that investors pay special attention to what is said by all the members of the Federal Reserve.  I believe that at this point Colorado home loan rates are still good and if you can lock at a rate that is desirable then Lock even if it is a long term lock.  I have seen too many times when economic news is light inflation tends to be a fail safe topic to talk about which can be devestating to Colorado home loan mortgage rates.  One last though over the last 12 months Stated income loans have taken a hit and as a broker I still have asses to Colorado home loan programs which will allow stated income to qualify.  I bring this up because out of the 41 Colorado home loan lenders I use only a handful still have these programs available and if you currently have an adjustable rate mortgage, Locking something in long term may be the right choice. 

What a day for Colorado home mortgage rates.  Those that took advantage of the lock recommendation will enjoy some of the best Colorado Home Mortgage rates we have seen this year.  The Federal Reserve lowered short term interest rates by .75% which is lower then what most Colorado Home Mortgage lenders projected.  We should have seen Colorado Home Mortgage rates drop even further but investors can be irrational and a frenzy took place.  Colorado Home Mortgage rates jumped up early morning and continued with no end in sight.  I was able to lock 5 clients yesterday and 8 clients today and Yes Derek you just made it under the wire.  I had one investor who appeared to forget that the market was going crazy and left rates somewhat unchanged which benefited some of the late locks put in.  I would continue to monitor the market but the frenzy told us that inflation still tends to be a concern for Colorado Home Mortgage rates.  People seem to think when the Federal Reserve drops rates that long term rates improve, that could not be further from the truth, but in this case the market already projected a 1% decreases in the Ferederal Reserve funds rate and rates should not have dropped, we are humbled by how quickly things can change and need to be reminded that when the rate is right we need to Lock.  I have no idea what the market will do but if you have not locked yet we may want to float for a day or so, but be prepared for another Colorado Home Mortgage alert to Lock.  Good night and Good luck:-) 

Today is the first official blog and as a Colorado Home Mortgage provider I hope that you will find the material as enjoyable to read as it is useful.  Several of my current clients have been getting the mortgage updates directly emailed to them.  I will begin to upload a majority of the Colorado Home Mortgage content right to my site.  Over the Last week or so we have seen Colorado Home Mortgage rates drop due to continued activities in the market.  Last weeks CPI (consumer price index) showed us that inflation has not gotten out of control, which helped Colorado Home Mortgage rates hit this years all time lows.  Today we are starting to project what the Federal Reserve will do to short term interest rates to help stimulate the economy.  We are forecasting a drop of 1.0% in the Federal funds rate which will again drive Colorado Home Mortgage rates down.  Typically we see an increase in interest rates immediately following a Federal Funds rate drop, but in todays Mortgage Backed Securities market investors have already anticipated the decrease and these bonds are seeing their pricing go up.  Remember their is an inverse relationship between Colorado Home Mortgage rates and the price of Mortgage Backed Securities.  As MBS increase Colorado Home Mortgage Rates decrease.  Look ahead in the week to see if the inflationary numbers continue to be exagerated if so we may see rates move up and it may be time to lock in your current Colorado Home Mortgage Rate.  Recommendation for today Float