Colorado home mortgage
As expected the Colorado home mortgage market was off to a tough start, mainly still affected by the news from yesterday. We had a couple of new economic reports come out today, both coming in lower then expected. This should start sending Colorado home mortgage rates downward through today. I expect that this movement will continue through early to mid next week sending Colorado home mortgage rates even lower. If the economic data continues to be negative we will see much of the increases experienced this week go away by next week. With that said we need to focus on historical data and historically Colorado home mortgage rates continue to come in lower then the two year average. Colorado home mortgage rates reporting under 6% is still good, we have just become so accustom to low rates that we believe that this is the norm and it just isn’t. I am still putting in a FLOAT recommendation, but be prepared to lock if we get anywhere near the 5.5% range. Locking at 5.5% will always be a win win for you. By looking at the economic data released today, our fear of inflation got some good news. Personal income and outlays were reported this morning. This report measures a consumers personal income and the source of that income while calculating a persons spending habit and what they are spending their income on. This report is generated once a month and is a good measurement with other reports to help gauge which direction inflation will move. Rising income and spending numbers can depict a growing economy, however it will also indicate inflation is on the rise. Colorado home mortgage rates do not respond well to inflation and luckily for Colorado home mortgage rates the news worked to its advantage today. However we will need to continue to monitor these reports closely, because it also sends a message to those impacting Monetary Policy (Feds) that we still have room for more short term interest rate reduction. When the Fed’s lower short term interest rates investors begin to respond to their fears on inflation. Investors know to well that making money cheaper will only create more spending, which is what the Federal Reserve wants to do. If spending becomes too prevelant inflation will get out of control, making a fixed investment less valuable and in return increasing Colorado home mortgage rates. The Federal Reserve has taken the position that they will do just about anything to keep us spending including lowering interest rates to an unhealthy level. Colorado home mortgage rates will respond well to the level of concern related to the economy, but if inflation runs wild expect a very large increase to Colorado home mortgage rates. So far so good, but lets keep a very close watch on any report signaling inflationary pressures. Recommendation: FLOAT lets see what next week brings us. Remember to check out www.coloradohomemortgageloan.net Daniel
Tags: Colorado Home Mortgage, Economic reports, inflation, Interest Rates
