Pending Home Sales Rise

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

colorado mortgage guy

Pending Homes Sales Rise:

October 11, 2010

On the heels of the prior week’s surprise monthly gain of 7.6% in Existing Home Sales, The National Association of Realtors reported last week that Pending Home Sales also increased.

The number of people who signed contracts to buy homes rose 4.3% in August, it was the second straight month of increases. Typically it could take up to 2 months for those newly signed contracts to turn into closed deals.  The unexpected increase was driven mainly by big gains in the South (up 7%), the West (up 6%), and in the Midwest (up 2%).  Pending Home Sales fell 3% in the Northeast.

While this data is low by longer-term historical standards, this report along with other recent  housing reports are showing some pickup in housing demand over the last two months.

What Happened to Rates Last Week:
colorado mortgage rates 

Mortgage backed securities (MBS) gained +62 basis points last week causing 30 year fixed rates to decrease from the previous week.  We actually reached a new record low for thirty year fixed rates on Friday but then pulled back from those levels.  MBS shot up to record levels on Friday just after the Unemployment report was released.  While the Unemployment rate remained unchanged at 9.6%, the market was very disappointed with the very small gain in the Non-Farm Private Sector area.  Investors feel that this weakness will spur the Federal Reserve to begin another round of quantitative easing which would temporarily lower rates. At this point it is purely speculation as the Federal Reserve has not definitively stated what they are willing to do and in what increments.

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
19519 E Parker Square Dr
Parker, CO 80134

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