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Consumer Sentiment Continues Climb:

The willingness to “pull the trigger” on a home purchase has more to do with how a home buyer feels about their own financial stability and their view of the economy than any other factor.

So, it is good news for the housing industry to see the Thomson Reuters/University of Michigan’s Consumer Sentiment Index continuing to climb upward from our lows of last summer.

The reading of 75.3 was a slight improvement from the prior month and the highest reading in a year. It also continues the trend of improving consumer sentiment since our lowest readings in August 2011.

A third of consumers spontaneously reported hearing about more job opportunities, the highest proportion ever recorded by the survey. The U.S. jobless rate unexpectedly fell to a three-year low in January, stoking hopes the labor market is healing.

What Happened to Rates Last Week?

consumer sentiment improves

Mortgage backed securities (MBS) gained just +7 basis points from last Friday to the prior Friday which moved mortgage rates slightly lower on a week-over-week basis.

We had a rough start to the holiday-shortened week with the highest mortgage rates on Tuesday afternoon in reaction to the approval of the second Greek bailout.

But the market reversed course for the rest of the week which helped to pull mortgage rates back down.

MBS rallied on a very strong 7 year U.S. Treasury auction and amid concerns that the magical Greek bailout package would not be enough to stem the tide of financial weakness in Europe.

What to Watch Out For This Week:

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The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages.

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It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets.  Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon. 

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Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134
www.coloradomortgageguy.com

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