Colorado Home Mortgage Banking

Today should be a light trading day for Mortgage Backed Securities.  As a result Colorado home Loan rates will fluctuate up and down throughout the day.  At this point if you have not locked your Colorado Home Loan rate you have basically committed that you will float through tomorrow.  We will be getting the Durable Goods report which reports the number of new orders placed with domestic manufacturers for immediate and future delivery. Durable goods are items considered to be useful for at least three years (such as vehicles, large appliances and computers.) 

Last month the Durable Goods report came in with negative growth number sending Colorado Home Loan rates immediately into favorable pricing.  Investors have set their expectations tomorrow indicating minimal growth in this category.  I believe that the expectation is still to high and that for the second straight month we will see negative numbers.  I will tell you why.  Durable goods growth indicates expansion in the economy.  In order to report positive growth for Durable goods companies would have to be projecting future increases in production.  Right now all the signs in the market indicate that production has decreased.  If we have decreased production will companies be focusing on increased future production? If I am right about the Durable Goods number we should see Colorado Home Loan rates improve. 

The last thing to monitor will be the Mortgage Backed Securities market today.  No matter what you want to believe there will always be some insider trading going on and if we see any major trends in the market it might be a preview for what is in store for the reports due out tomorrow.  So far the Mortgage Backed Securities market has traded down causing Colorado Home Loan rates to increase slightly today.  We definitely do not want that type of trend, because it could indicate that tomorrows Durable Goods report will come in higher then expected.  If that is the case Colorado Home Loan rates will certainly increase over the next few days.  Stay tuned for a late day buying frenzy if this happens I would bet that the report tomorrow on Durable goods comes in lower then expected.  Just my opinion, but lets see what happens.  I will keep my FLOAT recommendation in place and maybe by this time next week we will be able to lock in 5.5% yet again.  Stay tuned and call me with any questions.

Colorado Home Loan Rates have been repriced by several lenders for the worse.  The Reprice is in direct relation to the stock market increases.  Looks like the bulls are winning for now.  Don’t be to alarmed normally when the buying frenzy stops Mortgage Backed Securities increase.  Colorado Home Loan rates should get better by the end of the week.  Today we have some scary things showing up in the Colorado Home Loan rate market, but most of the increases in rates are due to volume being pushed into the stock market.  Stay tuned for additional Colorado Home Loan rate news….

We have had several economic reports come in today including GDP.  These reports will have an impact on Colorado Online Mortgage rates.  Much of the Economic Data released today; GDP, Personal Consumption Expeditures, Corporate Profits, and finally Jobless Claims, all came in right where investors had expected.  Initially Colorado Online Mortgage rates will probably increase on the news, mainly because investors that were previously concerned that the Economic news would come in worse then expected have begun to move money back into higher risk investments.  Those of you that were hoping Colorado Online Mortgage rates would drop over the next few days may not get the results you were looking for.  Colorado Online Mortgage rates will probably increase slightly but overall should stay pretty much in line over the next few trading days.  The only thing that will create any strong movement in the Mortgage Backed Securities market will be how bullish its investors feel.  With all that said lets continue to look at the facts: the economic numbers show that we remain at our lowest point in the market since 2001 and at this time we show no signs of immediate improvement.  This will ultimately be good for Colorado Online Mortgage rates.  GDP came in with an increase of .6% which still does not allow us to define the market as a recessionary market, but it is about as close as it can be.  To be considered in a recession we would need GDP to have two quarters in a row with negative GDP increases.  Another important economic report coming in today was the PCE report.  PCE came in lower then expected at 2.0% not 2.5%.  PCE or Personal Consumption Expenditures measures inflation and typically when inflationary reports come in better then expected Colorado Online Mortgage rates will decrease.  So far today that is not the case, but in the long term based on today’s results Colorado Online Mortgage rates should fall back in line and price decreases should be seen as early as late next week.  For now my recommendation remains as a FLOAT, but use caution, we are definetly in a gambling mind frame.  So far Colorado Online Mortgage rates have increased by .125% depending on the lender, if investors react like lemmings we may see rates move up even higher in the short run.  However, it should not take long for these investors to see that a safe investment like Mortgage Backed Securities will still be better then a bullish approach to the stock market.  Don’t for get to check out: www.coloradohomemortgageloan.net for additional information.

Daniel

Today seems to be starting off nicely for your Colorado Online Mortgage provider.  I have written many Colorado Online Mortgage post talking about the impacts of bad Economic Data on Mortgage Backed Securities.  Today the Durable Goods report was released a day earlier then I had expected.  The Economic data from Durable goods came in considerably lower then what was expected.  This will be good news for Colorado Online Mortgage rates today and should be a signal of whats to come.  Durable Goods data showed a reduction of 1.7% versus the .7% which is what investors were expecting.  This is yet another sign that we have entered into a recession.  We can debate whether we are in a recession or not all we want but the economic data does not lie.  This is good news for Colorado Online Mortgage rates because bad economic news pushes interest rates down as demand for mortgage backed securities increases.  Those that decided to gamble should see rates improve today and if the economic data continues on this trend we will see rates get even better towards the beginning of next week.  I just took a look at Colorado Online Mortgage rates today and we are starting out exactly where we left off yesterday, however I do expect Colorado Online Mortgage rates to improve by .125% before the day is done.  There is one other area that we must monitor and that is the supply of bonds being offered in the market.  When ever a large lending institution releases a portfolio to be sold in the securities market it creates a temporary over supply of Mortgage Backed Securities.  If these MBS do not sell quickly then the price on these investments drop, which will have an inverse relationship with Colorado Online Mortgage rates.  I bring that up because today we had the release of 1.2 billion dollars in newly orginated FHA Jumbo loans  to the market, luckly we have had several investors in the Asian markets jump on the opportunity which help avoid any interest rate increases due to over supply.  My recommendation today will be to FLOAT.  I will let you know as soon as possible when GDP figures are released. 

What a day for Colorado home mortgage rates.  Those that took advantage of the lock recommendation will enjoy some of the best Colorado Home Mortgage rates we have seen this year.  The Federal Reserve lowered short term interest rates by .75% which is lower then what most Colorado Home Mortgage lenders projected.  We should have seen Colorado Home Mortgage rates drop even further but investors can be irrational and a frenzy took place.  Colorado Home Mortgage rates jumped up early morning and continued with no end in sight.  I was able to lock 5 clients yesterday and 8 clients today and Yes Derek you just made it under the wire.  I had one investor who appeared to forget that the market was going crazy and left rates somewhat unchanged which benefited some of the late locks put in.  I would continue to monitor the market but the frenzy told us that inflation still tends to be a concern for Colorado Home Mortgage rates.  People seem to think when the Federal Reserve drops rates that long term rates improve, that could not be further from the truth, but in this case the market already projected a 1% decreases in the Ferederal Reserve funds rate and rates should not have dropped, we are humbled by how quickly things can change and need to be reminded that when the rate is right we need to Lock.  I have no idea what the market will do but if you have not locked yet we may want to float for a day or so, but be prepared for another Colorado Home Mortgage alert to Lock.  Good night and Good luck:-)