mortgage update denver colorado

Rental Vacancy Rates Fall to Lowest in Decade:

The share of empty homes for rent fell to its lowest level in a decade during the second quarter. This is very important for the housing market, as this type of trend is always a pre-curser for stronger housing demand.

The residential rental vacancy rate declined to 8.6 percent from 8.8 percent in the January-March period, the Commerce Department said on Friday. The second-quarter reading was the lowest since 2002.

In a positive sign for the housing market, the homeownership rate edged up to 65.5 percent in the second quarter from 65.4 percent in the prior period, the Commerce Department said.

The homeowner vacancy rate dropped to 2.1 percent, the lowest since the first quarter of 2006, from 2.2 percent in the first quarter.

The homeownership rate peaked at 69.4 percent in 2004 at the height of a housing market boom fueled by cheap credit.

What Happened to Rates Last Week?

rental vacancy rate

Mortgage backed securities (MBS) lost -38 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher.

Mortgage backed securities set a new all-time record on Tuesday. Mortgage rates move in the opposite direction of MBS, so mortgage rates set a new record for an all time low on Tuesday.

We had our highest mortgage rates on Friday and our lowest on Tuesday.

We started the week with a rally in Mortgage Backed Securities on concerns over Spain and Italy needing a big time bailout to survive.

But MBS reversed course and started to sell off after the European Central Bank’s President stated that he would do whatever it takes to save the Euro. While no new action has been announced yet, the market responded sharply to his support. As a result, the DOW climbed back above 13,000 and Mortgage Backed securities sold off as many investors that had been parking their money in our safe and boring bonds, moved their money back out and put it back to work.

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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