mortgage update denver colorado

Home Sales Increase to Near Two Year Highs:

Contracts to purchase previously owned homes increased solidly to a near two-year high in March, suggesting the spring selling season got off to a firmer start and offering hopes of a pickup in housing.

The National Association of Realtors said on Thursday its Pending Home Sales Index, based on contracts signed in March, jumped 4.1 percent to 101.4, the highest level since April 2010.

March’s strong rise in signed contracts pointed to a pick up in home resales after they stumbled in the past two months.

“First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” said Lawrence Yun, chief NAR economist.

Signed contracts were up 12.8 percent in the 12 months to March.

Contracts rose strongly in the South and West, but fell in the Northeast and Midwest.

What Happened to Rates Last Week?

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Mortgage backed securities (MBS) lost just -1 basis point from last Friday to the prior Friday which caused mortgage rates to move sideways.

The highest rates of the week were on Wednesday and the lowest rates of the week were on Monday.
MBS traded in a very narrow range all week as we had a mixed bag of economic news.
Durable Goods Orders, New Home Sales, Initial Jobless Claims and the 1st quarter GDP were all worse than expected and provided some support for bonds. But Consumer Sentiment, Pending Home Sales and Fed action were negative for bonds and kept a cap on any material gains.

The Federal Reserve Open Market Committee (FOMC, aka “The Fed”) left their key interest rate alone and basically made a carbon copy of their last policy statement. They basically told the market that there was no need for any additional stimulative measures at this time, nor do their projections show that further easing would be needed in the future. However, if the economy did turn from its current positive direction they are prepared to step in.

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.

Quote of the week:

First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good.

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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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