mortgage update denver colorado

New Construction On The Move:

Housing Starts increase in May and Building Permits hit a five month high. U.S. housing starts rose more than expected and permits for future construction touched a five month high in May, a government report showed on Thursday.

The Commerce Department said housing starts rose 3.5 percent to a seasonally adjusted annual rate of 560,000 units, retracing almost half of April’s steep decline. April’s starts were revised up to a 541,000 unit pace, which was previously reported as a 523,000 unit rate.
Single-family home construction, which accounts for a large portion of the market, rose 3.7 percent.

New building permits unexpectedly rebounded 8.7 percent to a 612,000-unit pace last month, the highest level since December. Economists had expected overall building permits in May to fall to a 558,000-unit pace.

Permits were boosted by a 23.2 percent surge in the multi-family segment. Permits to build single-family homes rose 2.5 percent. New home completions climbed 0.4 percent to 544,000 units in May.

What Happened to Rates Last Week:

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Mortgage backed securities (MBS) moved sideways last week which left 30 year fixed mortgage rates unchanged from last Friday to the prior Friday.  But it was a wild ride with MBS selling off and mortgage rates rising in the middle of the week.  This was primarily due to news that Germany and France were backing some additional support for Greece which may have delayed their default.  But MBS rallied back to high levels on the weaker than expected Consumer Sentiment and Philly Fed data.

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:

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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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