Jobless Claims Drop

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

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Jobless Claims Drop:

September 13, 2010

Nothing impacts demand for housing more than employment levels.  Quite simply, if someone is out of work or is concerned that they could lose their job, they are not going to make a major purchase such as a home.  So, it is good news that for the second week in a row that the Initial Jobless Claims have decreased.

Initial Weekly Jobless claims dropped by 27,000 which was much larger than expectations.  Continuing Claims also dropped slightly.  The stock market rallied on this positive economic news.

What Happened to Rates Last Week:
colorado mortgage rates

We started our holiday-shortened week with a nice rally as traders returned from the long weekend on Tuesday but then pulled back a huge -93 basis points causing 30 year fixed mortgage rates to reach their highest levels since August 18th.

Mortgage backed securities (MBS) pulled back (causing mortgage rates to increase) due to a much stronger than expected Initial Jobless Claims and Wholesale Inventories reports. 

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:
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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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