colorado mortgage guy

Jobs, Jobs, Jobs:

Three major jobs reports were released last week and all showed unexpected strength – all of which is good for the housing market.

Friday’s Unemployment Report stunned economists by dropping from 9.4% to 9.0%.  The Unemployment Rate has now dropped from 9.8% to 9.0% in just two months.  But many question the drop due to how the data is collected via phone surveys, so lets focus on two other reports that hit last week which are much more scientific.

The ADP Private Payroll report showed much stronger than expected growth.  They reported that private corporations hired 187,000 people last month.  Economists had expected a gain of only 151,000.  The Challenger Job Cuts report measures downsizing.  This report showed that the number of layoffs companies have announced plunged 34% in December to its lowest level in 13 years.

As the employment picture continues to brighten, it will add fuel to the very strong levels of Existing Home Sales that we have seen over the past two months.

What Happened to Rates Last Week:
 mortgage rates colorado

Mortgage backed securities (MBS) lost -135 basis points last week which caused 30 year fixed rates to move higher.  Mortgage rates increase each and every day last week and closed at their highest levels of 2011.  As we have discussed several times, mortgage rates are pushed lower when the economy is performing poorly and their is little to no risk of inflation.  So, as the economy continues its upward march out of the recession mortgage rates are pushed upward on the stronger growth and inflationary concerns.

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

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