Colorado Home Mortgage Banking

Colorado Home Mortgage Loan rates had some early morning volatility as the Producers Price Index data came in.  The PPI report is split into two categories and will be explained in full detail at www.coloradohomemortgageloan.net/news. Today, on this site, I will simply give you the basics.  The Report shows inflationary pressures on the production side.  Obviously, when it costs more to produce an item, the price for the item, has to be increased to cover the difference.  The increase in cost over time is what is known as inflation.  Inflation will have a sever affect on Colorado Home Mortgage Loan rates.  The PPI report came in below expectation for increases in production costs over all, but it came in higher then expectation when energy and food consumption data were added back in.  Long story short the mixed data should have had Colorado Home Mortgage Loan rates holding itself at its current levels. 

The data called for a calm day in the Mortgage Backed Securities market, but the reality of what played out in the market created quite a show for Colorado Home Mortgage Loan rates.  The Economic data set the ground work for another lemming type movement, as one investor after another began bidding on Mortgage Backed Securities.  Each investor thinking the other new something they did not.  Bond prices shot up about 25 basis points in about 30 minutes and about 60 basis points by the end of the day.  Colorado Home Mortgage Loan rates should see slight improvements, but not enough to get us to the 5.625% rate.  LOCKING remains the recommendation for now however if the mood in the economy changes we may have to set a new Locking floor around the 5.5% range.  This has not happen yet, but I am beginning to think that it will be a possibility. 

Colorado Home Mortgage Loan rates have moved up and down about .5% in the last 6 months.  Most of the data in recent weeks has investors believing that our economic troubles may be over.  In fact the recent stock market jumps have shown a bullish approach by investors.  This approach has drained funds out of the Mortgage Backed Securities market in order to finance these transactions.  Investors are reacting as if we are in a turnaround period.  Today the market lost considerable ground and recent economic news has, at least for today, lead investors back to using conservative strategies to invest.  Conservative strategies leads to better then expected gains in the Mortgage Backed Securities market.  As a result Colorado Home Mortgage Loan rates will trend lower today and 1^st thing tomorrow morning.  I stated this before, but LOCKING will remain my recommendation as long as you can get 5.75% or better. 

It is strange how the market has reacted over the last year.  Most of the reactions made in the market so far have originated from economic predictions made by experts.  Experts like weathermen have the knowledge to predict, but at best, it is an educated guess.  It’s hard not to be influenced by the trend of the day when so many experts are giving their opinions on the subject matter. The direction experts are taking on the current economic situation is that we may be in store for some tough times ahead.  Colorado Home Mortgage Loan rates will be positively influenced by tough economic times.  The question we need to answer right now is what direction will the economy take over the next 6 months?  We have had a tough year and the storm will be something to remember for a long time.  Are we in the Eye of the Hurricane and will the storm continue?  It’s too soon to tell just yet, but the signs are pointing towards even tougher times ahead. 

GDP continues to report low, but not low enough to indicate a recession.  I believe that a recession is part of the normal economic process.  Historically we go through short periods of time where the economy actually shrinks.  We call this time a recession.  The economic reports keep stating that we are just above what would be called a recession, but I believe that the data is slightly biased.  I also believe that we still have a ways to go before we begin to see change.  I can go on and on with why I believe this but will instead leave the phone line open to your questions.  The tough economic turmoil does make predicting Colorado Home Mortgage Loan rates a little easier to predict and I will continue to give you the feedback you need to make the right Colorado Home Mortgage Loan rate decisions.

Daniel

Colorado Home Mortgage Loan programs should see some movement today depending on what is said on Capital Hill.  Treasury Secretary Henry Paulson will be presenting a 218 page plan to help overhaul our financial systems and hopefully put some stability into Colorado Home Mortgage Loan programs in the future.  Henry Paulson will be proposing a plan, supported by President Bush, which will give the Federal Reserve more control of the financial markets.  These Policy changes will quickly impact Colorado Home Mortgage Loan rates by implementing  monetary policy strategies currently utilized by the Federal Reserve.   Today like Friday should be a good day for rates.  I looked at a couple of investors and it appears that they are being slightly conservative to start, but I expect some movement by mid-afternoon.  Colorado Home Mortgage Loan rates should drop again today.  Stay tuned to see how Capital Hill responds and be prepared to Lock your Colorado Home Mortgage Loan rate if something comes up unexpected until then FLOAT remains my recommendation.  Even though I have a FLOAT recommendation I typically tell people to lock when the rate hits 5.5% it is a good rate and it will guarantee you one of the lower rates offered in some time.  Holding out for that .125% or .25%  may cause you to miss out on a Colorado Home Mortgage Loan rate you can live with.  Stay tuned, I just got a Reprice alert and it appears that the market will react well to the Treasury Secretary’s report.  Rates are starting to move down.   Stay Tuned!!!