Colorado Home Mortgage Banking

Investors in the Mortgage Backed Securities market continue to amaze me.  Today Durable Goods came in weaker then expected which should translate to positive movement for Colorado Mortgage Rates.  So far today Colorado Mortgage rates have gone up about .125% to .25% the reasoning still baffles me a bit.  We had three Economic reports coming in Durable Goods, Jobless Claims, and Home sales.  Colorado Mortgage rates will certainly respond to the data released in each of these reports.  Durable Goods came in below expectation and should have a positive impact on Colorado Mortgage rates.  Home sales came in far below expectations which again should be good for Colorado Mortgage rates.   Finally, Jobless Claims did come in better then expected, but this report does not typically move the Mortgage Backed Securities market that much.  This will drive some of the movement in the Colorado Mortgage market, but overall the news should be positive for Colorado Mortgage rates.  So the question is why has Colorado Mortgage rates not improved.  The only reasonable explanation to me has been the recent activity seen in reports about corporate profits.  Ford Motor Company posted a profit which exceeded expectations.  Ford Motor Company continues to be a market leader and positive profit news will be positive news for stocks.  Though Ford exceeded expectations we continue to see other companies reporting their expectations far below investor’s projections.  In short the Ford profit increase, though good for stocks, will not be good enough to make up for all the other companies.  We may still be feeling some of the effects of yesterday’s news on the 1Q 1.7 Billion Dollar loss from Ambac.  The reason this is so significant is that Ambac is an insurance company backing current Mortgage Backed Securities in the event of default.  If a company like this has issues it rocks the Colorado Mortgage sector to its core.  Fear spreads like wild fire and investors begin to react.  Investors tend to come back in line after a few days when stock investments begin to loose there appeal.  This happens as more and more companies report negative profit gains for the 1Q.  We should see these things come back in line soon.  We are still at a high point and my Recommendation remains as a FLOAT, the issue we are facing in the economy will become headline news again and rates should start dropping again.  The good news now will be the lack of Economic data over the next 6 days and investors begin to speculate on what will be reported on April 30th.  April 30th will be the deciding factor for the month of April, and will be what makes or breaks Colorado Mortgage rates for the month.  If it is getting to hot and you want to cut losses and Lock your Colorado Mortgage Rate, we will more then likely be locking you in at 5.875%.  Most of my clients were promised 6.0% or below and my goal continues to be 5.5%, but the likely hood of 5.5% becomes tougher and tough each day.  The Colorado Mortgage market over the next 45 days indicates that locking in at 5.75% should be our goal and a Lock recommendation will be made at 5.75%.  If your Colorado Mortgage closing date is beyond the 45 days we can still hold out for 5.5%.  Let’s use caution, but so far the data still indicates improvements are on the horizon.  Stay tuned and please call me with your Colorado Mortgage needs.