Colorado Home Mortgage Banking

The lack of Economic news continues to have investors looking to the stock market for signs.  Colorado Home Mortgage rates started off stable this morning as retailers continued to report week by week decrease in sales, causing investors to have some concerns about the risk in stocks.  The day appeared to be heading in the right direction and Mortgage Backed Securities began to trade a bit higher then yesterday.  This was short lived, as the headlines reported that Disney had higher then expected 1Q profits.  The news forced money out of the bond market and into the stock market. This may be the reason for the late day rally in the Stock Market.  Colorado Home Mortgage Rates did jump a bit late this afternoon, and we may see Colorado Home Mortgage rates continue to rise tomorrow morning.  Having just watched Lilo & Stitch with my 2 year old I can understand the success Disney has reported and unlike any of the oil companies, I actually feel good about where they are going.  Colorado Home Mortgage rates will however, continue to be impacted by headlines throughout the week.  We have a couple of reports coming out tomorrow which can change the momentum and hopefully push Colorado Home Mortgage rates back down.  We will watch these reports tomorrow and give you an updated on where the market is heading.  I do have some concerns building up lately.  Everything I am seeing in the market shows that we have some tough times ahead as it relates to Colorado Home Mortgage rates.   We will continue to set our locking point to 5.75%.  I have several people holding out and unless the momentum changes, we may want to go ahead and start locking in your Colorado Home Mortgage rate. 

There are several things that I am concerned with, the biggest issue I have relates to how investors currently view the economy.  I believe investors have been hit so hard for poor projections that they have become ultra conservative.  The conservative approach has caused investors to project data at extremely low levels.  In theory investors use this information and act accordingly as they buy and sell investments.  Typically, investors will buy Mortgage Backed Securities during tough times and stocks during good times.  When investors project poor economic data in the near future, activity in the bond market will increase.  This will cause Colorado Home Mortgage rates to improve.  The problem I am having recently is that I just don’t believe that investors are responding to the market according to the projections shown. This is causing the Mortgage Backed Securities market to be under inflated.   Now when the actual data comes out investors have been reacted accordingly, causing the market to fluctuate up and down depending on what the economic data shows.  The only proof I can give that will show the market is under inflated is the relationship between the 10 year Treasury bond and the 5.5% coupon bond.  The 10 year treasury and the 30 year 5.5% coupon bond has shown signs which indicates a larger then expected pricing gap.  The gap used to be much greater, but over the last couple of weeks has dissipated a bit.  Though the gap is smaller we still have some room to move. Colorado Home Mortgage rates will see the benefits of the gap reduction over time, but it will take some time.  This will all come down to investor confidence in the Mortgage Backed Securities market.  Right now investors are not showing the confidence needed to reduce Colorado Home Mortgage rates down where we would like to see them.  It is hard to project when investor confidence will return, but all the negative press about Colorado Home Mortgage companies going out of business or needing help certainly does not build the momentum we need.  Countrywide and Fannie Mae are good examples of why investor confidence is so low.

The next issue I see is the continued inflationary risk in oil.  It is obvious that when shipping cost increases the increase in cost is passed down to consumers.  The increased pricing causes inflationary pressure, which adds more bad news for Colorado Home Mortgage rates.  We will see this issue in the market for some time to come.  Another problem facing Colorado Home Mortgage rates is corporate profitability.  The corporate profitability reports have shown some real surprises in 1Q 2008.  Several companies projected to report poor profitability actually reported that profitability was up.  Adding fuel to the fire was the number of Mortgage companies that have indicated that their default rates will continue, causing sever profitability issues in the future.  Countrywide continues to be the Headline leader in bad mortgage performance, but out just today, Fannie Mae has reported similar issues in their holdings.  This has investors concerned about a possible bail out needed from the Federal Reserve.  This will certainly add to an already unstable Mortgage Backed Securities market and will have investors continuing their conservative approach in the market. 

My recommendation is to LOCK if and when you can get the recommended Colorado Home Mortgage rate of 5.75%.  Its looking like 5.875% will be around for some time.  Luckily we did hit a pricing ceiling at 5.875% so the rate will hold strong, but any major news can have rates going to 6.0%.  I will be watching the Colorado Home Mortgage market very closely over the next few days.  We may have to suck it up and simply lock while we are under the 6.0% range.  Call me and I will be happy to answer your Colorado Home Mortgage questions.  I had a crazy busy day to day that had me in and out of the office, so I apologize for not getting the Colorado Home Mortgage information out to you sooner.  In retrospect rates did not move much if any since yesterday and seem to be lingering around the 5.875% range.  I will post earlier tomorrow.

As I have stated before I will summarize the blog info in the last paragraph so here it is in the simplest of terms.  Colorado Home Mortgage rates today are at 5.875%.  These rates will be impacted by any Headline news because economic data this week is light.  The Headlines had Disney showing stronger then expected profits which caused Colorado Home Mortgage rates to go up a bit.  The Colorado Home Mortgage rate did not go up enough to hit 6.0%.  We expect the Market to start off poorly tomorrow riding out the news seen today.  We have a couple of reports that may help rates but will not know until these reports are released.  Right now if you can get 5.75% at all I would LOCK.  If you are a gambler we do have a long way to go in order to get below 5.75%.  Today 5.75% will have an additional cost to it, I am hoping that the cost goes away by the end of the week at which time I will have a strong Colorado Home Mortgage LOCK recommendation in place.  Call me with your Colorado Home Mortgage questions.  Thank you for reading and please remember to visit www.coloradohomemortgageloan.net/news for more information.

Daniel

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.

Colorado Home Loan rates dropped slightly yesterday afternoon as Corporate profits began to come in lower then expected.  Was this Shocking news for investors?, not really.  Corporate Profits were expected to come in lower then projected.  So why are we not seeing the movement in Colorado Home Loan rates normally attributed to these types of market conditions.  Simply put investors don’t have a clue on how to react to this market.  Investors have experienced this market before in 2002 and 2003.  So why the confusion?  I believe the deer in the head lights approach currently being used in the market comes from the whipping investors have had in the last 6 months.  Investors have moved in and out of the stock market at the worst possible times causing their clients to raise serious confidence issues in the portfolios these investors are handling.  Now I know you will have someone out there that is a financial planner that will claim left and right about how good their portfolio’s are doing.  OK I will give that Financial Planner the benefit of the doubt.  However most investors have lost big over the last 6 months, and this comes at a time when the market overall has not dropped that much.  What this means is investors are getting it wrong and they have been beat down enough.  Currently we are seeing lenders react in a similar way.  Colorado Home Loan Rates SHOULD be better today then they are.  Rates in the Mortgage Backed Securities market indicate that Colorado home loan rates from our lenders should be lower, but they just are not.  The spread between the 10 year bond and the 30 year bond is at a point that should have Colorado Home loan rates posting a better rate today as well, and that is just not the case.  So what the HECK is going on.  Investors are just sitting back and waiting to see what happens.  This is a sign for any prospects looking for a Colorado Home Loan that a broker will be a better resource to you.  The reason a Colorado Home Loan broker will be a better resource to you is the flexibility to choose between a number of Colorado Home Loan lenders.  Someone out there will figure it out soon, and we are already seeing some larger interest rate spreads between a number of Colorado Home Loan lenders.  Having the flexibility to choose our lenders gives you the flexibility to get the best Colorado Home Loan rate being offered in the market.  With all that said, Rates will probably trend a little higher today.  The Colorado Home Loan rate increase will be driven by the over supply of bonds.  FLOATING remains in effect, and as soon as lenders figures out that the economy has some major obstacles to overcome, the sooner rates will drop again.  I am forecasting a slight drop in rates by early next week.  We put a lock recommendation last Friday and if you locked then, you made out pretty well, if not stay tuned.  I believe we will get back to some of those Friday lows by Wednesday or Thursday next week.  God Bless and call me anytime:-)  I will post a new posting on www.Coloradohomemortgageloan.net around 2pm this afternoon. 

Daniel

Colorado Home Mortgage rates are not looking good for anyone looking to lock right away.  The ISM report did come out and it appears that the data came in slightly above expectations.  This report gives monthly data to show whether production is up or down in the manufacturing sector.  When production is up, the economic forecast will be positive.  Positive economic forecasts tend to be negative for Colorado Home Mortgage rates.  The data released today on the ISM reports were just a bit better then expected.  This normally by itself would not create the Colorado Home Mortgage rate increases we are seeing this morning.  The cause of today’s rate increase was, the unexpected announcement made by the Union Bank of Switzerland (UBS).  UBS stated that they would raise more capital by offering additional investment opportunities to the market.  Colorado Home Mortgage rates will definitely take a hit today on this news.  Investors will be pulling money out of the MBS market and putting it into the stock market.  We expect to see some impressive gains in the stock market as a result of this new information.  Don’t be to discouraged, we do have some encouraging Colorado Home Mortgage rates news coming out this week.   Economic data will continue to come in throughout the week, these numbers are forecasted to come in low, which should help us rebound from today’s interest rate increases.  The one report to watch will be the employment numbers due out at the end of the week.  The employment figures will have some strong impacts on what rates will do going into next week.  Though the economy would like to see employment figures come back high, we believe that the trend will continue to see bad economic news finding its way back into the market.  If you have not Locked your Colorado Home Mortgage loan at this time, then we will probably have a bumpy ride for the next few days.  Finally another problem to recognize is, that investors have been overly optimistic in their economic data predictions, and as a result have been scrutinized in the market.  Their portfolios have performed poorly due to incorrect forecasts.  These investors have wised up and have begun to forecasts economic data that appears to be more in line with what the market is doing.  Because of this, a false sense of confidence currently lingers in the market.  As soon as they realize that even though they are now getting the forecasts on economic data correct, the news is still bad.  In the long term that should result in rates falling back down.  Its hard to tell people to float when rates will move upward over the next day or so, but today the market just did not respond well for Colorado Home Mortgage rates.  This said, we are hoping for some of the over reaction captured in the market today to tapper off in the next day or so.  We are all in for a bumpy ride, but expect to see rates come back down towards the end of the week.  The real concern right now will be how high Colorado Home Mortgage rates will jump before coming back in line.  

Daniel