Banner Week for Housing Data

On January 17, 2011, in mortgage rates colorado, by admin

colorado mortgage guy

Banner Week for Housing Data:

November 1, 2010

We had several high-level housing reports that showed surprising gains.  We started with Existing Home Sales which shot up 10%.  This is the second straight month of big gains in this report, last month it moved up 7.6%.  Also, the report showed that the supply of homes listed for sale has edged downward and is another positive sign for housing.

Next up was the national home price index calculated the Federal Housing Finance Agency.  They reported that home prices increased 0.4 percent during the month which was double what analysts were expecting.

We rounded out the housing data with New Home Sales.  The Commerce Department reported that sales of newly constructed single-family homes rose 6.6 percent.  Even more encouraging is that they reported that the amount of inventory on the market is at its lowest levels in 42 years.

Despite all of the “doom and gloom” news reports, the data speaks for itself. Housing is making a comeback.

What Happened to Rates Last Week:
 colorado mortgage rates

Mortgage backed securities (MBS) lost -31 basis points last week causing 30 year fixed rates to increase from the previous week.  We started the week on a downward trend for MBS as the market lost -106 basis points from Monday’s open to Wednesday’s close which pressured mortgage rates upward.  This was primarily due to stronger than expected economic data and weaker than expected 2 year and 5 year Treasury auctions.  We rebounded to make back some of our loses by Friday on the strength of the 7 year Treasury auction and very weak GDP report.

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:
denver mortgage rates

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.