Colorado Home Mortgage Banking

Colorado Home Loan rates will be improving a bit today as the stock market takes yet another hit for the day.  We have seen the equities market take about a 15% decrease in the last couple of weeks which would normally be great for Colorado Home Loan rates.  I stated a couple of days ago that we had a number of economic reports coming out which should impact Colorado Home Loan rates.  Consumer Sentiment, Core PCE, and Personal income reports all came out today.  I will discuss those reports and yesterdays reports at www.coloradohomemortgageloan.net/news right now just know that the economic data today was for the most part positive news for Mortgage Backed Securities.  When the price of Bonds goes up Colorado Home Loan rates tend to dropJ 

So the battle rages on with investors on which direction our economy is headed.  Investors are faced with a very difficult decision in their investment strategies.  If the Economy continues to spiral downward then equities will be a poor choice.  We are seeing that in the stock market right now.  Colorado Home Loan rates should have had huge improvements while the stock market dropped.  The improvements we should have seen were halted by the continued threat of inflation.  Inflation is the second obstacle facing investors today.  If investors invest in long-term fixed rate bonds, and inflation gets out of control, investors will loose value in their portfolios.  So the question is what should investors do.  If in fact investors choose fixed rate investments over equities, Colorado Home Loan rates will improve. 

In the short run it certainly appears that poor economic conditions remain a bigger concern then inflation.  The Federal Reserve continues to push its actions toward improving economic conditions, while talking about inflationary pressures.  This tactic is used to stimulate the economic activity, while trying to hold off inflationary pressures.  We are still facing some major obstacles in the next 18 months and will not be able to really account for the aftermath until a recovery in our financial system begins.  We can see the impacts of inconsistency in Colorado Home Loan rates already.  Based on our current Economic condition there is no reason why the 30 year fixed Colorado Home Loan rate should be any higher then 5.0% flat.  This is a huge difference from where we are at now.  We are pushing the envelop on anything below 6.25% for any Colorado Home Loan program.  Even though we are above the 6.00% range we believe that some relief is in store.

Colorado Home Loan rates should continue to see relief despite the current inflationary pressures seen in Oil.  Colorado Home Loan rates will improve, because the economic issues are out weighing the cost increases that contribute to inflation.  Though Colorado Home Loan rates will improve, they will not improve as much as they should.  $142 a barrel of oil, COME ON!!! Can anyone who promised to protect the American people from foreign threats not see that this is a threat to our financial system?  Of course not, we have a bunch of talkers in the senate that would rather debate each other to death versus actually doing something.  At least when the Republican Party had control of congress things got done, mind you it was not always the right decision, but at least something happened.  We have now experienced a two year downward turn since the democratic lead Senate took over and so far NOTHING has happened.  I guess as most of you can see I am a Republican, but I am also honest enough to know that there is good to both parties, regardless of your political affiliation you have, something needs to be done.  Colorado Home Loan rates will continue to be in a state of confusion until we fix some of the variables impacting our markets from abroad.  Colorado Home Loan rates like any other interest rate instrument would stimulate our economy back if in fact rates were low enough.  Inflation already has several momentum building influences when money supply becomes less expensive.  When we add the unsustainable cost increases of oil to our inflationary numbers, it becomes very difficult to combat economic issues.  The tools used by the Federal Reserve to help stimulate the economy are limited by the constant treat of inflation.  When inflation presents itself without Federal Reserve intervention we are limiting what can be done to help stimulate our Economy.  Oil needs to be address and it needs to be addressed now, otherwise we will be in this economic rut longer then we need to be.

Sorry about that tangent.  I do want to quickly express my appreciation for Ben Bernanke I have criticized him a bit in the past, but I believe he is doing all he can to help our economic systems.  He is faced with many difficult obstacles never seen in our economy before and so far he has done everything he can to ensure that our situation does not get any worse.  Regardless of what you think about President Bush, his economic stimulus package that gave Americans additional funds late April and May showed that at least he is willing to do something.  I am maintaining a FLOAT recommendation today and so far the MBS markets appear to be favoring Colorado Home Loan rates.  We have not seen any substantial decreases over the last few days, but we do not foresee any major reports that will drive Colorado Home Loan rates up.  Every time I watch Lender activity it appears that they are moving Colorado Home Loan rates up quickly and bringing them down slowly.  Right now we are seeing the momentum for Colorado Home Loan rates coming downward. 

Please give me a call about your Colorado Home Loan rates, and hopefully I did not offend anyone.  I really enjoy everyone’s perspective and can sometimes be opinionated.

God Bless and have a great weekend.

Daniel

Colorado home loan rates saw some relief in the market today.  We had a very tough day yesterday and saw Colorado home loan rates jump up about .25%.  Today we have recovered some of the losses from yesterday, but we still have some ground to make up to recover completely from yesterdays losses.  I believe that the market will continue to improve up through Tuesday and at this point will recommend that you continue to FLOAT.  If you are conservative in anyway and want to take the risk out of the market then go ahead and LOCK.  You should be able to get 5.75% on your 30 year fixed Colorado home loan rate program.  The only economic report that came in today was the Existing home sales data.  The data indicated better then expected sales numbers and as a result held Colorado home loan rates from improving even more.  Though the data came in slightly better then expected it still came in below 5 million which is historically low.  Following the Existing home sales numbers, were current home inventory numbers which recorded its highest level since 1985. 

Colorado home loan rates probably saw most of its improvements due to the fact that the Mortgage Backed Securities market appeared to be slightly undervalued making it a good buy.  The 10 year treasury saw some great improvement creating an even bigger separation in price between the 5.5% coupon bond and the 10 year Treasury note.  In simple terms it means that we have room for additional improvements with Colorado home loan rates in the short term and will probably see most of the losses experienced from yesterday regained by Wednesday next week. 

We have several economic data releases due out next week and all of them will play a role in how Colorado home loan rates will move.  You can find out more about these reports at www.coloradohomemortgageloan.net/news  Please let me know if you have any Colorado home loan questions and have a safe weekend.

Daniel

Colorado home loan rates took a big hit over the last couple of days.  We have had a variety of economic reports coming out and so far it is hard to determine the exact reason Colorado home loan rates jumped the way they did.  The biggest market mover yesterday came with Retail Sales.  Colorado home loan rates jumped after better then expected retail sales sent signals that we may actually be in a recovery period.  Recovery periods tend to send investors shopping for higher risk investments, which typically yield better returns then Mortgage Backed Securities.  We saw Colorado Home Loan rates get worse by about .375% depending on the bank.  Regardless of which bank you shop at, Colorado Home Loan rates did get worse by at least .25%.  Mortgage backed securities went into a selling frenzy yesterday, and one investor after another jumped on the band wagon.  The 5.5% coupon dropped down to 99-30 which put Colorado Home Loan rates at its highest level in 3 months. 

The economic data alone did not make Colorado Home Loan rates to increase the way they did.  The Federal Reserve board members spoke out yesterday and reiterated concerns for inflation. The Federal Reserves current policy is to fighting inflation at all costs, which tends to be good for MBS, but the fact that inflation is a concern in the short run is bad for Colorado Home Loan rates.  Inflation is bad news for Mortgage Backed Securities and the mention of it drives investors out of long term bonds and into short term investments.  The primary reason for that is simple long term bonds devalue as inflation increases reducing the return on the bond.  Colorado Home Loan rates always react negatively to this information.   The Federal Reserve representatives appear to be much more outspoken under its direction today then in the past.  The current communication policy is drastically different from the communication policy’s of past Federal Reserve administrations.  This is a new thing for investors to get their hands around.  During Greenspan’s administration with the Federal Reserve the policy was to maintain strict confidentiality and only report the data necessary to keep the market moving in the right direction.  Today it appears that the policy is to get more information out and let the financial markets dictate how it will react to the data. This is a good thing, but investors are still uncertain how to react to the information.  In the past they have reacted heavily on anything that was said, because the data was limited and we are still seeing this sensitivity with investors in the market today.

Colorado Home Loan rates did recover slightly today, but not enough to make a major impact from the losses felt over the last couple of days.  Luckily most of our loans in the pipeline are locked.  I like to think that I had something to do with that, but honestly we did have some luck involved.  However, if it makes me look like a rock star for the moment at least, then I will take that for as long as I can.  Colorado Home Loan rates jumped up about .5% over the last week, which will impact anyone trying to lock today.  Try not to let yourself be too distracted by the rate increases because, I believe we will have some better days ahead.  Consumer Pricing Index was released a few hours ago, and it signaled that inflation, at least for the moment, is not as bad as first anticipated.  The numbers came in lower then expected which is good news for Mortgage Backed Securities.  The Mortgage Backed Securities market reacted well to the news and Colorado Home Loan rates did rebound a bit today.  We have a variety of Economic reports being released tomorrow and you can learn about these reports at www.coloradohomemortgageloan.net/news

If you have not locked yet, then you are better FLOATING your rate for the time being.  The market over reacted in the last 3 days and it appears to be slightly undervalued.  With that said if the economic data being released tomorrow (Jobless claims, and Industrial Production) shows data that is Bond adverse then, much of the devaluation will be made up, and rates will certainly head in the wrong direction.  O.K that should cover me if the market continues to head in the wrong direction but here is what I believe.  If you have not locked yet the risk reward is good to wait until after the reports come out.  The Mortgage Backed Securities Market closed on a heavy upward swing which translates to lower Colorado Home Loan rates. We are hoping that this momentum will continue this evening in the foreign markets and carry over into tomorrow.  If that happens and the economic data is bond friendly then rates will probably make up a bit portion of what was lost over the last week or so.  The LOCK rate recommendation continues to stand at 5.75% and I believe we will get there again, but we need some help from the headlines to push investors back into the market.  We have seen a great deal of up and down momentums over the last 6 months and for the moment it does not look as if the trend will stop.  Colorado Home Loan rates should hit a point where locking will make sense, but right now the market just does not seem to be valued correctly to make that recommendation today.  I will continue to update you on where Colorado Home Loan rates are, but in the mean time have a great day.  I apologize for missing a couple days, but when the market goes crazy my time is better served on the phones with you.  If you need up to minute date info on Current Colorado Home Loan rate information call me it only takes me a minute or two to bring you up to speed, but an hour or so to write the information down.  Best of luck and stay tuned.

Daniel

Bad Colorado credit home loan programs have been available in our market for as long as I can remember.  Lenders became even more aggressive 3 and 4 years ago, finally letting up about a year ago.  These Bad colorado credit home loan programs did serve a purpose, but only if the mortgage broker knew what the impacts of a Bad Colorado credit home loan.  These loans were what I referred to as a temporary relief program designed to get out of in 2 or 3 years depending on how long the short fixed rate period lasted.  Bad Colorado credit home loan programs are often referred to as Subprime loans.  These Bad Colorado credit home loan programs have an adjustment period 2 or 3 years after the loan orginated.  Once the fixed period expired these Bad Colorado credit home loan programs will adjust 2% every 6 months until they hit the market cap rate which is around 10%.  These loans were good to get high risk buyers into a home who previously could not qualify for a loan however credit counseling would be manditory to avoid the risk of future foreclosure situations.  This is where we in the mortgage profession failed.  I made it a point to follow up with these clients at least 10 -12 times a year and when the counseling is effective clients only needed to have a clean credit history for one year to qualify for a FHA loan.  FHA loans are fixed for 30 years and have a rate around 5.5% today, much better then the Bad Colorado credit home loan rate around 6.5% even during the best of times.  Another obsticle in refinancing today comes in the value of the home, but FHA requires only 5% equity and provides a perfect solution to Bad Colorado credit home loan programs offered in the past.  Congress also passed a program that will even help people currently situated in a Bad Colorado credit home loan program with current mortgage lates or if you are currently behind on your mortgage.  There is a condition the lates on the mortgage must have appeared after the adjustment period.  It is designed for Bad Colorado credit home loan programs that have adjusted out of control.  Long story short talk to someone who knows the industry, who understands the programs and a person who can offer you a solution.  I won’t say that these Bad Colorado credit home loan programs are bad, the served a purpose and allowed more people to enter home ownership then ever before, but with this came a responsibility that those that need a program like this needed to focus on their credit during the fixed rate period, if not your bad Colorado credit home loan became more of a liability then and asset.  Please take time to visit my other two websites www.coloradohomemortgageloan.net which holds my 2nd blog site, and www.nostresshomeloans.com which has all the primary information to include my bio.  Have a great day:-)  I hope the weather gets better soon summer is my favorite time of the year:-)

Daniel