Pending Home Sales Rise Again

On January 31, 2011, in mortgage colorado, by admin

colorado mortgage guy

Pending Home Sales Rise Again:

Following the trend of last week’s 12.3% jump in Existing Home Sales, Pending Home Sales rose 2% according to the National Association of Realtors.  A Pending Home Sale is counted when a contract between the buyer and seller has been completed but the house has not closed yet.

The monthly gain from November to December was double the expectations of economists and is the fifth monthly gain out of the last six months.  Both Existing and Pending Home Sales continue to show monthly gains even though there has been no tax credit for some time which shows that there is genuine demand for housing.  Many buyers are finally getting “off of the fence” with the steady rise in thirty year fixed rates.

What Happened to Rates Last Week:
 
mortgage rates colorado

Mortgage backed securities (MBS) gained +20 basis points last week which caused 30 year fixed rates to move lower.  However, we had a very volatile week.  From Tuesday’s highs to Thursday’s lows, MBS dropped -67 basis points which pushed 30 year fixed rates higher.  This was due to some strength in Consumer Confidence and New Home Sales.  But we reversed our trend to close on a positive note.  This was primarily due to the situation in Egypt.  Globally, traders began to move their funds into the relative “safe haven” of U.S. Treasuries and Mortgage Backed Securities.  This added demand helped to push rates lower.

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.

mortgage rates denver

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 denver

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

Comments are closed.