mortgage update denver colorado

Plum Creek Funding Inc 1/30/2012

Consumer Sentiment Rises in January for Fifth Monthly Gain:

A measure of consumer sentiment rose in January for the fifth straight monthly gain, according to data released Friday, as job gains helped put worries about U.S. government finances in the background.
The final January reading of the University of Michigan/Thomson Reuters gauge of consumer sentiment reached 75.0, compared to a preliminary report of 74.0 and a December reading of 69.9. The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the start of the most recent recession.
Recent job growth has been improving, though still well below the pace needed to bring unemployment significantly below the 8.5% rate it was last month.

Obviously, this is important to housing. As consumers feel better about the economy, the more likely they are to purchase a home.

What Happened to Rates Last Week?

Mortgage backed securities (MBS) gained +150 -91 basis points from last Friday to the prior Friday which moved mortgage rates to their lowest level in 4 months.
This was a complete reversal from the previous week where we lost -91 basis points.
MBS shot up (and therefore mortgage rates moved lower) primarily for three reasons. Front and center was the Fed.

The Fed left their key interest rates alone but made a statement that their fed fund rate would essentially be zero until 2014 which caused MBS to rally.

Also the 4th QTR GDP numbers did show economic growth at 2.8% but fell short of the market expectations of 3.0%. This helped mortgage rates because this report was not inflationary.

U.S. bonds also benefited from concerns in Europe that the renegotiations between Greece and their bond holders was not going well. This could trigger Greece to finally default and cause some additional financial instability in the region.

What to Watch Out For This Week:

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. I will be watching these reports closely for you and let you know if there are any big surprises:

DateTimeEconomic Release
30-Jan8:30PCE (MoM)
30-Jan8:30Core PCE (MoM
30-Jan8:30Core PCE (YoY)
30-Jan9:55PCE (YoY)
30-Jan8:30Pesonal Income
31-Jan9:00S&P Case-Shiller Home Price Index
31-Jan9:45Chicago Purchasing Managers Iindex
31-Jan10:00Consumer Confidence
1-Feb7:00MBA Mortgage Applications
1-Feb8:15ADP Employment
1-Feb10:00Consutruction Spending
1-Feb10:00ISM Manufacturing
1-Feb10:00ISM Prices Paid
1-Feb10:30EIA Crude Oil Stocks
1-Feb17:00Total Vehicle Sales
2-Feb8:30Initial Jobless Claims
2-Feb8:30Continuing Jobless Claims
2-Feb8:30Nonfarm Productivity
2-Feb8:30Unit Labor Costs
3-Feb8:30Average Weekly Hours
3-Feb8:30Nonfarm Payrolls
3-Feb8:30Avg. Hourly Earnings (MoM)
3-Feb8:30Avg. Hourly Earnings (YoY)
3-Feb8:30Unemployment Rate
3-Feb10:00Factory Orders
3-Feb10:00ISM Non-Manufacturing

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.

mortgage broker denver

Vince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
19519 E Parker Square Dr
Parker, CO 80134

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