colorado housing market update

February 28, 2011

Housing Picture Continues to Brighten:

denver mortgage

Existing Home Sales continued their upward climb in January.  This is the fourth month in a row where we have seen month-over-month gains in the number of units sold.  The National Association of Realtors reported that sales rose 2.7% from December.  Also, the inventory levels decreased again:
 
colorado mortgage

The number one reason that the housing market tanked was due to oversupply.  So, with home sales increasing and inventory levels decreasing, this is certainly a trend with some momentum.  All cash sales and distressed sales did increase last period.  But any way that the excess inventory is gobbled up is good.  It certainly shows that the demand is there and that investors are snapping up properties before prices rise.  Maybe you should too?

What Happened to Rates Last Week:
 
mortgage rates colorado

Mortgage backed securities (MBS) gained +83 basis points last week which caused 30 year fixed rates to move lower.  We had a series of stronger than expected economic reports such as Consumer Confidence, Existing Home Sales and Durable Goods Orders.  Normally, this positive economic data would have moved mortgage rates higher.  However, mortgage backed securities (and therefore mortgage rates) benefitted from continued concern over the stability of the Middle East.  U.S. Treasuries and other bonds such as mortgage backed securities saw strong demand as a pure safety play.

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:

home loan 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

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