mortgage update denver colorado

Pending Home Sales Pop:

Potential home buyers came out of the woodwork in October, signing contracts to buy existing homes at a higher-than expected pace.

Pending home sales jumped 10.4 percent compared to September, according to the National Association of Realtors, with the biggest gains in the Midwest, up 24 percent. The Northeast also saw sizeable gains, as did the South. Only out West did buyers stay on the sidelines, with pending home sales there basically flat month to month.

“Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows, and there is a pent-up demand from buyers who normally would have entered the market in recent years,” said Realtor chief economist Lawrence Yun. “We hope this is indicates more buyers are taking advantage of the excellent affordability conditions.”

This data continues the string of positive housing data with New Home Sales up 1.3% on a monthly basis and Existing Home Sales up 13.5% on a yearly basis.

What Happened to Rates Last Week:

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Mortgage backed securities (MBS) gained +58 basis points from last Friday to the prior Friday which moved mortgage rates lower. MBS traded in a very tight range for the week. We received much better than expected economic data which normally pressures mortgage rates. Pending Home Sales, Manufacturing, Vehicle Sales, and Unemployment data all surpassed the market expectations and put to bed the concept of a “double-dip” recession for the United States. MBS made all of their weekly gains on Friday afternoon. This gave consumers the best mortgage rates of the week. This was the result of continued concern over the European debt crisis and traders seeking to park their money in the safety of U.S. bonds over the weekend. 

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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