Colorado Home Mortgage Banking

The week’s headline economic report showed that inflation rose far more than expected in July, yet mortgage rates barely reacted and ended the week essentially unchanged. The July Consumer Price Index (CPI), the most widely watched inflation indicator, rose at the fastest annual rate since 1991. The core rate, which excludes the volatile food and energy components, rose at a 2.5% annual rate. The Fed’s perceived comfort level for core inflation is between 1.5% and 2.0%.

Mortgage rates usually move higher after an unexpected increase in inflation. This time they did not. Investors have started to expect that inflation levels will diminish later in the year and point to a couple of factors. First, slower economic growth in major global markets will reduce demand for goods and energy. In addition, a stronger US dollar will lower the cost of imported goods.

Even the Fed’s Stern, noted for his vigilant anti-inflation stance, stated that he expects inflation to come d own after the third quarter. To summarize, economic weakness at home and abroad, a stronger dollar, and a decline in oil prices offer hope that future inflation levels will be lower.

The Economic Calendar will be very light next week. The Producer Price Index (PPI) will come out on Tuesday. PPI focuses on the increase in prices of “intermediate” goods used by companies to produce finished products. Housing Starts will also be released on Tuesday. Leading Indicators and the Philadelphia Fed index will come out on Thursday

Colorado Online Mortgage rates have been getting some support with a variety of Economic Reports already released.  CPI which we talked about on Friday should have had some real positive reactions in the Colorado Online Mortgage Market.  Much of the Colorado Online Mortgage Rate increases were due to inflationary concern and our first real inflationary report of the month indicated better then expected inflationary numbers.  Producer Price Index will be the second inflationary report to be reported on this month and I am expecting similar results.  Colorado Online Mortgage Rates typically react to economic reports more then anything else, however when the Federal Reserve board speaks the market tends to react even more then the Economic Facts themselves.  That is the problem right now.  Exactly how many reports can come out before those inflationary fears go away is still up in the air.  Right now Colorado Online Mortgage Rates will continue to react to the fear versus the actual Economic data being released.  Until those fears are pushed away, you can expect Colorado Online Mortgage rates to continue to climb.

So how can we predict what will happen next and what steps you should take to protect your Colorado Online Mortgage program right now?  The answer requires you to understand a bit of what has already happened in the market and the likely hood of what is to come.  Basically speaking if we look at the historical trends that are tied to Colorado Online Mortgage rates, we can easily see that the up and down swings currently finding its way in the market, patterns itself in line with normal economic cycles.  We fall into the same patterns that we have been seeing for many, many years.  We have experienced these up swings before, just look at where Colorado Online Mortgage rates were in August of 2007.  Just because we are at a much higher point today, does not mean Colorado Online Mortgage rates will not find its way back down.  We are a society that reacts to the right now, and patience is a virtue that can pay off for you in the future.  You have to have faith in your Colorado Online Mortgage provider that they understand the trends going on and that they structure your Colorado Online Mortgage to a point that will yield you the best results today and in the future.  Right now is not the right time to over react we need to stay the course and figure out what the best Colorado Online Mortgage program will be for you.  When rates are as high as they are a temporary fix can help your Colorado Online Mortgage situation a great deal.  For example I can still get your Colorado Online Mortgage rate below 5.5%.  Call me about that and I will be happy to explain.

I got off on a little bit of a tangent and want to re-focus my attention to the Colorado Online Mortgage Market.  Over the last 3 or 4 business days, economic reports have indicated better then expected news for Colorado Online Mortgage rates.  Jobless Claims, CPI, Core CPI, Consumer Sentiment, and today Empire State Manufacturing Surveys have all displayed economic data that should have favored Colorado Online Mortgage rates.  Though these reports came in favorable to Colorado Online Mortgage rates, we still witnessed an overall increase in the Colorado Online Mortgage Rate market.  The increases seen in the Colorado Online Mortgage rate market despite the positive economic data, indicates how powerful our Federal Reserve really is.  The Federal Reserve can drastically move the Colorado Online Mortgage markets by carefully choosing the right topics to talk about in their speeches to the press.  Inflation continues to haunt us and will do so until investors fears go away, or GREED takes over. 

We forget that investors love making money and will overcome any fear they have as long as the risk/reward makes sense.  As Colorado Online Mortgage bond prices drop investors begin to take notice.  At a certain price point fear goes away and investors will buy Mortgage Backed Securities.  When the buying demand increases we will see Colorado Online Mortgage rates begin to drop again.  We will also see some of the fears associated with buying MBS dwindle, as more economic data indicators favor Colorado Online Mortgage bonds over high risk equity securities.  So when you really look at it, we have several indicators favoring a drop in Colorado Online Mortgage rates: 1. Historical data indicates we are at a high point and rates should start to fall again, 2. Economic data seem to indicate favorable movement with Colorado Online Mortgage rates, and finally 3.  Investors will take advantage of buying bonds that are selling as low as they are.  Ultimately investors trading in Mortgage Backed Securities are profit seekers and will always look for the short term profit opportunities.  The only thing currently working against Colorado Online Mortgage rates will be the fear of inflation.  We will need time to realize how bad or good inflation really is.  The facts don’t lie and investors will grow tired of seeing their peers making money in the Mortgage Backed Securities market while they stand by.  Inflation concerns are being reinforced by higher oil prices and are a good way to see why investors believe inflation will go up.  We must remember that prices are still dictated by demand and though one component appears to be pushing prices up, unless consumers are willing to spend (consumer sentiment at an all time low) price wont go up.  We have an abundance of people providing a supply of goods and services and most of them will see profit margins drop in order to see profits at all. 

This is a good explanation on what I think the Colorado Online Mortgage Rate market faces today.  We will have some people agree with what is said in this post and some people will not, but ultimately the future will play out the facts. In the mean time you should be working with someone who understands the Colorado Online Mortgage Market.  We will provide that service to you and will work hard to get you in the right Colorado Online Mortgage program today.  Don’t settle for anything less.  Call me for any other information you might need to make your next Colorado Online Mortgage decision.  God Bless.

As always don’t for get to go to www.coloradohomemortgageloan.net/news for some additional information.

Daniel

Colorado Online Mortgage rates take another hard hit today.  We are at our highest 30 year fixed Colorado Online Mortgage rate for 2008.  Historically speaking Colorado Online Mortgage rates are still good, but certainly not as good as they were 3 months ago.  So why are we facing all of these price increases to our Colorado Online Mortgage rates?  The answer is simple:  Inflation.  The fear of inflation is the biggest cause for movement in the Colorado Online Mortgage markets.  Investors holding on to long term bonds see the value of those bonds decrease as the value of on money decreases.  Colorado Online Mortgage rates are tied to a fixed rate income stream and anything impacting that income stream will cause Mortgage Backed Securities to drop in value.  Colorado Online Mortgage rates react inversely to the price of bonds, which is why Colorado Online Mortgage rates have gone up. 

Now what information do we have to show that inflation is on the rise?  Consumer Price Index and Producer Price Index are both leading economic reports showing inflationary pressure.  Both reports have major impacts on Colorado Online Mortgage rates, but interestingly enough, both reports came in better then expected for the month of May.  So why does inflation appear to be a problem?  More importantly why is it impacting Colorado Online Mortgage rates?  Well another big mover of Colorado Online Mortgage rates come from information released by the Federal Reserve.  When the Federal Reserve speaks investors listen very closely.  So closely in fact that they tend to read into things that may or may not have been the intent of those releasing the information.  Colorado Online Mortgage rates tend to jump up when Federal Reserve members begin to talk about inflation. 

Richard Fisher the Federal Reserve board member representing the Southern States spoke to the media earlier today.  Mr. Fisher expressed great concern about inflation stating that Americans should be wary of “stirring the embers of inflation.”  Colorado Online Mortgage rates jumped quickly on fears that inflationary numbers will appear higher in the months to come.  Another major fact on inflation comes in oil prices.  This is something we can see now and it is right in front of us.  The cost of shipping increases when oil prices are high.  When Shipping costs go up so do prices, which is what inflation is.  It’s hard to know exactly what will happen in the months to come as it relates to Colorado Online Mortgage rates.  It appears that there is a struggle between bad economic data, which is good for Colorado Online Mortgage rates and inflationary concerns which is bad for Colorado Online Mortgage rates.  Depending on what investors are motivated by, will dictate what direction Colorado Online Mortgage rates will go.

Colorado Online Mortgage rates were also impacted by new home sales which was the only official economic report released today.  The numbers came in far better then expected which created even more momentum as it relates to the increases seen in Colorado Online Mortgage rates today.  Finally we are seeing signs of an economic Term not used since the Reagan administration: “Stagflation” A real problem and an obvious answer to what is going on today.  You can read more about this at www.coloradohomemortgageloan.net/news.  You may find that to be an interesting read.

The final analysis for the day will be whether to Lock or Float.  It’s hard to recommend Floating when Colorado Online Mortgage rates continue to rise.  It’s even harder when there are no obvious signs that Colorado Online Mortgage rates will stop rising.  However if you are looking at the long term picture FLOATING makes sense.  If you are closing in 15 days or greater then FLOATING may pay off.  Most investors have hedged a considerable amount in the pricing for a 30 year fixed Colorado Online Mortgage rate.  They may be a bit too cautious and in return Colorado Online Mortgage rates are worse then they should be.  Colorado Online Mortgage rates have room to drop but we may not see any drops soon.  Especially, if Bernanke speech tonight reaffirms Fishers concerns on inflation.  Fisher is known to fear inflation and to have that as his primary focus, but if the big man on the board begins to sing the same tune, we will see Colorado Online Mortgage rates go up even further.  If you can LOCK a 30 year Colorado Online Mortgage rate for 6.0% then go ahead and LOCK.  I am moving my new LOCK recommendation to 6.0% and will push my clients to LOCK in at that Colorado Online Mortgage rate.  I expect that we will gain some of the lost ground for Colorado Online Mortgage rates over then next few weeks, but for now Inflation continues to be the hot topic which is bad for Colorado Online Mortgage rates. 

If you have questions or need any help with your Colorado Online Mortgage please give me a call directly.

Daniel  

Colorado Online Mortgage rates today have lost some ground from yesterdays improvements.  The primary reason for the increases appears to be the lack of volume currently seen in the Mortgage Backed Securities market.  I am sure that the Market is waiting for the Federal Open Market Committees Aprils meeting notes to be release in order to gauge future Federal Reserve action.  The Federal Reserve controls monetary policy in the United States, and with that control, they influence the flow of cash in our economy.  The accessibility of funds in the economy creates fluctuations in interest rates and it is for this reason, that the bond markets focus so much on what is said in these meetings.  Colorado Online Mortgage rates will see some of the gains realized over the last two days dissipate if the Federal Reserve makes any mention of inflationary issues.  The last Federal Reserve meeting notes that were released kept a very cautious eye on how it addresses inflation, so that the market did not overreact.  Well the last two inflationary reports sent some mixed signals.  Immediately after the reports were released it became obvious that the Mortgage Backed Securities markets position on inflation was that the economies inflation numbers appeared to be under control.  So the pricing currently felt in the bond market reflects better then expected inflationary numbers.  Colorado Online Mortgage rates benefited from this approach.  The concern today will be whether or not the Federal Open Market Committee puts any negative spins on the status of inflation.  If the FOMC meeting notes indicate concerns for inflation we will see Colorado Online Mortgage rates increase today.  So far it appears that early morning trading may be a preview of what investors are already afraid of and that is increased inflationary concern.

The Federal Open Market Committee has had board members express concerns over the last couple of weeks about the state of the economy.  They are issuing warnings about the length of time our economy will continue to witness the tough economic situation that has found its way into our Country.  Colorado Online Mortgage rates will do well as long as our economy faces the issues currently in place.  This may be a great time to restructure your current financial position to help lower your monthly payment obligations.  Colorado Online Mortgage rates are still hovering around the 5.75% range and LOCKING would be a good idea.  I have said many times before anything below 6.0% is a good Colorado Online Mortgage rate and should be considered closely.  It’s hard to say when the economy will be in its recovery phase and weather or not we are currently experiencing a recession.  What can be said is that when we face tough economic times we do experience relief in the cost of funds.  This will translates to better Colorado Online Mortgage rates. 

We have only one major economic report being released today which is the FOMC minutes from April 29^th meeting.  It will be what was said and where the focus will be over the next 6 months by the Federal Reserve, that will be market movers today.  Go to www.coloradohomemortgageloan.net/news to get the detail explanation on these economic reports.  Another report being released today will be Canada’s inflationary report which should be monitored simply for the global inflationary trends.  Canada releases several reports that are similar to U.S. economic indicators.  Canada’s CPI report due out any minute will give us an inside look on what may be in store on our next inflationary report. 

Colorado Online Mortgage rates are still good enough to implement a LOCK recommendation for today.  You should be able to lock in at 5.75% and if you are willing to pay the cost 5.5% will be available.  Most of my pipeline has been locked already and those of you who are not locked should be getting a call from me today.  Please give me a call with any of your Colorado Online Mortgage questions, and have a great day.

Daniel

Colorado Online Mortgage rates found some good things happening in the market today.  The Economic data released earlier in the morning opened the door for some additional drops to an already low Colorado Online Mortgage rate.  Housing starts did not come in any different then what I had expected which was slightly higher then what the consensus was.  The big news of the day came from the consumer sentiment reading which showed that consumers today are far more concerned about where the economy is headed then ever before.  Consumer Sentiment came in at a 24 year low, it’s hard to put your hands around it, but we are actually hitting numbers close to what we may have seen around the great depression time periods.  People have very little faith and investors are beginning to listen.  Colorado Online Mortgage rates always do better during difficult economic times. 

Today I have implemented a strong Lock recommendation for all Colorado Online Mortgage rates.  The recommendation came in early today and continued as Colorado Online Mortgage rates finally came back in line.  I was able to lock another 6 loans at or under 5.75%, depending on what these clients were looking for.  If you had a loan in the pipeline odds are you are now locked into a rate you can live with.  We have also seen the re-introduction of the Colorado Online Mortgage ARM product which is being offered at an extremely low rate.  4.875% can be your 5 year fixed Colorado Online Mortgage rate if you choose to have it.  The Product does adjust after the 5 years, but we have had many people lock in to capitalize on this unique offer.  Colorado Online Mortgage rates should continue to see some good things happening, especially if the inflationary reports due out on Tuesday come in below expectations.  It appears that the investors may be gearing up for another heavy volume summer especially if they continue to offer the 5 year fixed rate below 5%.  We have not seen this type excitement in Colorado Online Mortgage rates since the refinance boom of 2001-2003. 

After a great Colorado Online Mortgage rate start, the market did drop a bit late this afternoon.  This could be in reference to Profit Seekers in the Mortgage Backed Securities market.  These terms and any other term related to economic reporting can be found at www.Coloradohomemortgageloan.net We are trying to keep thing simple here.  The live Mortgage Backed Securities market feed showed a late day increase in Colorado Online Mortgage rates and if you still have the ability to lock at or under 5.75% then my recommendation is to do just that.  Investors may get a little concerned about Core PPI which will be released on Tuesday.  If the Data comes in indicating inflationary pressures you can count on bond prices to drop down from where they are at now.  If this happens Colorado Online Mortgage rates will go up.   Please take a minute and look at my other site to get some of the details about the reports coming out next week.  Take some time today and lock in your loan if you can.  5.75% should not carry any costs and will put you in a good Colorado Online Mortgage rate.  Best of Luck and call me with your Colorado Online Mortgage rate.

So far we have seen a lot of activity in the mortgage backed securities market, but we have not seen Colorado Online Mortgage rates move from yesterdays closing bell.  The market continues to focus on headline news and so far it appears that the news is light.  A couple members of the Federal Reserve did moan and grown about inflation, but so far it has not caused Colorado Online Mortgage rates to go up.  Inflation will be a hot topic for some time, especially as oil continues to rise.  I am seeing reports online that have indicated that the oil reserves may not be where they thought they would be, which will certainly increase the cost of oil.  Fear of supply always translates to higher prices.  Colorado Online Mortgage rates will take hits as long as oil continues to rise. 

I will not go into a long drawn out discussion on my belief’s as it relates to oil, but think about this; If Oil companies are currently setting record breaking profitability quarter after quarter, eventually that profitability has to slow down.  Well one way to continue the profitability increasing is to create fear about supply issues.   I wonder who is pushing these reports and how accurate they really are.  It is truly a monopoly and we are at their mercy:-(  Colorado Online Mortgage rates are not the only thing impacted by these companies our economy as a whole feels the pain.  Politicians are taking notice, but no one is taking action.  Anyways I can go on and on, but the fact of the matter is that we have a real problem in store as it relates to inflation, and that problem originates from oil.

Colorado Online Mortgage rates are seeing small improvements from a variety of smaller economic reports being released today.  Productivity appears to be high, but inflationary pressure related to Non-Farming industries appears to be lower then initially expected.  Taking out the cost of fuel from the inflationary data inflation appears to be trending considerably lower then expected.  Americans are just not spending at the same rates the once were.  Colorado Online Mortgage rates appeared to be trending in safer waters, but not enough to change the rate below the current 5.875% figure being reported.  Pending Home sales index also registered another decrease in Home sales.  It appears that the negative sales growth in Home sales has not slowed down yet.  This also tends to be good news for Mortgage Backed Securities, and home sales did came in line with investor projections.

I don’t expect a lot of activity that will change Colorado Online Mortgages rates for the better or for the worse today.  I will keep my Lock recommendation at 5.75%, and today that LOCK does carry a bit of a cost.  5.875% does appear to be the going rate for our 30 year fixed rate programs with no points.  I will keep you posted on some additional economic information tomorrow, especially since we do have the Jobless claims report coming out.  Jobless Claims will make Colorado Online Mortgage rates move in one direction or the other depending on how the data comes out.  In the mean time call me with any of your Colorado Online Mortgage questions.  When you have time find out more about the economic reports being released today and how they impact Colorado Online Mortgage rates at www.coloradohomemortgageloan.net/news  

Daniel

Looking at the Colorado Online Mortgage rate sheets being released today, it has become clear that Locking today would be locking at a high point.  Colorado Online Mortgage rates are at a 4 week high and today’s Stock market activity has not helped at all.  You can find out more about that at www.coloradomortgagebanking.com/news for now we will focus on what is in store on the economic calender.  The Mortgage Backed Securities market will be at full alert come April 30th when the Federal Reserve meets and the Gross Domestic Product reports.  These two events will certainly drive Colorado Online Mortgage rates in one direction or another.  Until then the Economic Calender appears to be short on reports.  The only other real market moving report to be released before then will be the Durable Goods report due out on April 24th.  Colorado Online Mortgage Rates will be heavily influenced by information coming out of the stock market over the next few days.  So far the Stock market has released a variety of Corporate Profit reports that have shown to be hurtful to the bond market.  The news has also contributed to the increases being felt on Colorado Online Mortgage rates.  Looking at investor released rate sheets this morning it is clear to me that they are not pricing their Colorado Online Mortgage programs for people to lock today.  This could be due to the uncertainty in the market, but it also has to do with the number of loans they have locked in place already.  They have projected a light volume day and their Colorado Online Mortgage Pricing shows that.  Rates started a bit higher today then they should have based on the market yesterday, however if the market has another late day rebound,  pricing should improve later today.  In the mean time I will Continue to recommend FLOATING.  I make that recommendation with caution.  We are entering into a time that is tough to predict what investors will do.   The normal predictability that takes place based on economic data has not shown itself in the market.  I believe that this gives us a much bigger window of improvement, but in the past when this has happened, Colorado Online Mortgage Rates jumped about .75% before relief was felt.  Though Colorado Online Mortgage rates did drop again, people who were closing during that 4 week window faced some tough decisions on where their rate finally finished off at.  If next weeks durable goods report send Colorado Online Mortgage rates up,April will be a tough month as it relates to Colorado Online Mortgage rates.  Stay tunedand call me with questions.

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.

There was a lot of activity today with Mortgage backed securities.  We saw several lenders giving us updated pricing allowing our Colorado Online Mortgage options to improve throughout the day.  As bond prices fluctuated today I felt it necessary to point out some key information to pay special attention to.  As a Colorado Online Mortgage company I have often written about the phenomenon known as breaking through the pricing floor and ceilings at any given price point.  These price points are easily monitored and often over looked in pricing Colorado Online Mortgage options.  Lets stick to the basics when bond prices increase there is an inverse relationship between the price of a bond and the interest rate being quoted by your Colorado Online Mortgage company.  As your Colorado Online Mortgage company your rates will be less when Mortgage Backed Securities are up.  The opposite is obviously true when Mortgage backed securieties are down then Colorado Online Mortgage rates are up.  You might find it amusing that I tend to use certain key terms over and over, please bear with me my web master has forced me to talk a certain way, try to work through it.  Ok lets get back to the pricing floor and ceiling discussion, as bonds move throughout the day they tend to move very quickly between certain price points.  Lets use a basic example of $100 bond it may increase to $120 and as low as $80 without warning and with ease.  This will cause Colorado Online Mortgage companies to price out up or down depending on the bond price.  However when the bond hits that $80 mark or the $120 mark the price of the bond hits a barrier this barrier in the Colorado Online Mortgage world will be referred to as the ceiling and floor of the bond.  If some type of economic activity forces the bond through these barriers then a new floor or ceiling comes about.  Now you are probably asking yourself how that will impact your Colorado Online Mortgage now, well today we saw 5.5% coupon bond hitting that pricing ceiling.  If the 5.5% coupon bond continues its course and breaks through the ceiling we will see rates improve even more.  Beware of the Ferderal Reserves they are expected to decrease rates by 1% which is poison to mortgage backed securities, luckly investors are prepared for it.  If you need any additional questions answered please provide comments for your local Colorado Online Mortgage Broker:-)

Daniel