mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc

Pending Home Sales Rise 8.4%:

The National Association of Realtors reported that their index of Pending Home Sales rose 8.4% from February 2012 and was constrained only by the lack of inventory available for sale.

Thinking about buying a home in 2013? This is not the same market where you can take your time and view many different homes. Home prices are moving up and the number of available homes for sale that are in good condition are moving fast.

Lawrence Yun, NAR chief economist, said limited inventory is holding back the market in many areas. “Only new home construction can genuinely help relieve the inventory shortage, and housing starts need to rise at least 50 percent from current levels,” he said. “Most local home builders are small businesses and simply don’t have access to capital on Wall Street. Clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market.”U.S. home resales (the largest segment of the housing market) hit a three-year high in February and prices jumped, adding to signs of an acceleration in the housing market recovery.

More good news: Yun projects existing-home sales to rise about 7 percent in 2013 to approximately 5 million sales, which is near the current level of activity and the national median existing-home price is forecast to rise nearly 7 percent this year, while mortgage interest rates should remain historically low, but trend up slowly.

So, the industry experts are saying: 1) Good quality Inventory is moving fast and at 2) higher prices and 3) with mortgage rates rising throughout the year. What does this tell you?

What Happened to Rates Last Week?

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Mortgage backed securities (MBS) gained 34 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move to slightly lower. We traded in a fairly narrow range and had our highest mortgage rates on Monday morning and our lowest rates on Wednesday.

We had a mixed bag of economic news last week. On the plus side, Durable Goods Orders, New Home Sales, Pending Home Sales and Consumer Sentiment were all very strong. But on the negative side we saw weakness in Initial Jobless Claims, Consumer Confidence and Chicago PMI. This caused MBS to trade in a very well defined trading channel. This channel was capped by our 50 day moving average and supported by our 10 and 25 day moving averages.

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.

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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.

mortgage broker denverVince 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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