mortgage update denver colorado

Foreclosures Decline Again:
Our continuing series of positive housing news continues with CoreLogic’s recent foreclosure report.

Lenders seized fewer homes in August, in part due to the rising popularity of alternatives to foreclosure. There were 57,000 foreclosures completed in August, down from 58,000 in July and 75,000 a year ago, according to CoreLogic.

August was the fourth month in a row that fewer foreclosures were completed. The decrease was in part due to lenders turning to other methods of dealing with distressed homes, such as short sales or loan modifications, said Anand Nallathambi, chief executive officer of CoreLogic.

“The continuing downward trend in foreclosures and a gradual clearing of the shadow inventory are important signals that the recovery in housing is gaining traction,” Nallathambi said in a statement.

We have been reporting that Existing Home Sales are up, median home prices are up, mortgage rates are down and now the shadow inventory is decreasing. All these report continue to point to a housing rebound.

What Happened to Rates Last Week?

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Mortgage backed securities (MBS) lost -41 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher. We had our highest mortgage rates on Friday and our lowest rates on Wednesday.

Our economic picture brightened last week with both the ISM Manufacturing and Non-Manufacturing (services)reports coming in much stronger than expected and showing economic expansion. On Friday, the Unemployment Rate was released and it dropped from 8.2% to 7.8%.

Mortgage backed securities were trending upward (better rates for you) early in the week over concerns about Spain and the fact that they hadn’t requested help from the European Central Bank (ECB) yet. But MBS pricing started to reverse course Wednesday after comments by the ECB President that inflation would be higher than they expected (bonds hate inflation) and that their bond purchase program was working and that Euro would remain intact and they were ready to help once Spain asked for help.

MBS moved to their worst levels on Friday after the much better than expected Unemployment report.

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

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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