mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
2/11/2013

Another Sign Of Housing Strength – Taking Equity Out Again:

During the housing boom of the last decade Americans withdrew over $1 trillion in home equity. They did it through cash-out refinances, home equity loans, and home equity lines of credit. The latter allowed them to use their homes like an ATM. They spent the money on cars, televisions, vacations and fancy home upgrades. It was seemingly endless equity, until suddenly that equity was gone.

But the Home Equity Line of Credit (HELOC) is back and millions of homeowners are tapping into their equity to put it back to work. Nationally there has been a 31 percent increase in HELOC’s year-over-year.

With home prices up 8 percent year-over-year in December, according to the latest reading from CoreLogic, homeowners are regaining home equity at a fast clip—1.4 million borrowers rose above water on their mortgages through the end of September. That number likely increased as price appreciation accelerated toward the end of the year.

Unlike the equity grab during the housing boom, this is real equity that borrowers are tapping into. During the housing boom, banks were relaxed in their valuation processes, often times only requiring a statistical valuation or at the most a drive-by-appraisal. But not this time. After getting burned by their second lien positions, banks are making sure that the equity is really there and are using very strict underwriting guidelines. The fact that under these new strict guidelines and appraisal scrutiny more and more HELOCs are being approved is another sign that the housing market has some real strength.

What Happened to Rates Last Week?

refinancing colorado

Mortgage backed securities (MBS) gained +15 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move sideways. We had our highest mortgage rates on Tuesday and our lowest rates on Monday.

Weaker than expected Factory Orders coupled with the political drama out of Spain helped MBS to rally to their highest levels of the week on Monday (Higher MBS = lower mortgage rates). But the market reversed course on Tuesday after a very robust ISM Services Index release (the services sector accounts for 2/3 of our economy). This strong economic news caused bonds to sell off.

For the rest of the week, we had worse than expected Initial Weekly Jobless Claims (which is friendly for rates) and a much lower than expected U.S. Trade Balance (which is non-friendly for rates). As a result MBS traded in a fairly thin range. Bonds effectively stopped trading early Friday afternoon as traders left NY ahead of the big storm.

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.

mortgage refinancing 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 denverVince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
Fax: 877-840-0965
vince@coloradomortgageguy.com
10952 S. Pikes Peak Dr.
Parker, CO 80134
www.coloradomortgageguy.com

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
2/4/2013

Home Price Index Gains 5.5%:

case shiller housing index

The S&P/Case-Shiller 20-city composite posted that home prices were 5.5% higher than during the same period in the prior year, for the strongest year-over-year growth since August 2006, with increases in 19 of 20 cities.

Housing is clearly recovering, with positive trends for new- and existing-home sales. However, prices remain 30% below a bubble peak in 2006, according to Case-Shiller data. That means that there is still an excellent opportunity to select your next home while home prices still have room to move upward.

What Happened to Rates Last Week?

home prices gain

Mortgage backed securities (MBS) lost -27 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher. The week before, MBS lost -72 basis points. That means over the past two weeks, MBS have pulled back -99 basis points which have driven mortgage rates higher. We had our highest mortgage rates on Wednesday and our lowest rates on Friday morning (briefly).

We had a big week for economic data. The first look at the 4th quarter GDP was very disappointing, showing our first economic contraction (-0.1%) since 2009. This negative economic news was bond-friendly and helped to improve mortgage rates. But the market quickly shrugged off the news as traders discounted the report believing that the government pulled back on spending due to the looming fiscal cliff and that the number would be revised upward in the future.

The Unemployment Rate moved upward from 7.8% to 7.9% but offsetting that was very positive upward revisions to November and December Non-Farm Payrolls. Initially, this news did pressure MBS but it gave way to very positive manufacturing data. ISM Manufacturing jumped up from 50.7 to 53.1. Also, Consumer Sentiment was much better than expected rising from 72.9 to 73.8. The combination of these two reports sank MBS pricing and caused mortgage rates to rise.

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.
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 denverVince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
Fax: 877-840-0965
vince@coloradomortgageguy.com
10952 S. Pikes Peak Dr.
Parker, CO 80134
www.coloradomortgageguy.com

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
1/28/2013

New and Existing Home Sales Jump – Best in Several Years:

EXISTING HOMES:

The National Association of Realtors said that December sales of previously-owned homes were up 12.8% from a year ago. That brought full-year sales to 4.65 million, up 9% from 2011 and the best year for home sales since 2007, when there were 5 million homes sold just before the start of the recession.

The improved demand for homes in December led to the inventory of homes for sale to fall to 1.82 million homes on the market, the lowest supply since January 2001 .The tighter supply, and the drop in distressed sales, have helped to lift home prices so that the median sales price for the year rose to $176,600, up 6.3% from 2011. That’s the biggest gain in prices in since the bubble year of 2005.

And the Realtors are predicting strong sales should continue into 2013 and beyond. It has a forecast for 5.1 million existing home sales this year, and 5.4 million next year.

NEW HOMES:

The Commerce Department said than New U.S. single-family home sales hit a seasonally adjusted 369,000-unit annual rate.

The median price for a new home rose to $248,900 in December from $245,600 in November, according to figures that are not adjusted for seasonal swings. Rising prices are seen as a sign of improving health in the housing market.

Economists think home building added to economic growth last year for the first time since 2005. Friday’s report showed 367,000 new homes were sold last year, the most since 2009.

What Happened to Rates Last Week?

colorado home loans

Mortgage backed securities (MBS) lost -72 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher. We had our highest mortgage rates on Friday and our lowest rates on Wednesday.

We had a holiday-shortened week, MBS and mortgage rates moved sideways until Thursday morning and then everything changed. MBS sold off after a much better than expected Weekly Initial Jobless Claims report which surprised to the downside for the second straight week. This positive jobs data sank bond prices. Mortgage rates move inversely to bond prices, so as bonds sold for less money….mortgage rates increased.

Bonds continued their “free fall” Friday as the markets continued to reposition after the World Economic Forum in Davos. Essentially, the consensus among global economists was that the U.S. has turned the corner and is starting to see growth also their outlook brightened on Europe. Bonds are very popular when there is no growth…so this was negative news for bonds and mortgage rates in general.

MBS have now sold off -146 basis points this year. We have seen an increase in mortgage rates as a result. If we continue to get good economic news out of the U.S., this trend will continue.

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.

denver home loans

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 denverVince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
Fax: 877-840-0965
vince@coloradomortgageguy.com
10952 S. Pikes Peak Dr.
Parker, CO 80134
www.coloradomortgageguy.com

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
1/14/2013

Free and clear homes point the way to next round of housing demand:

We are all too familiar with the constant media reports that state that approximately one third of home owners are “upside down” or “underwater” on their mortgage. This is when they owe more on their mortgage than what their home is worth. As home prices have been steadily increasing, these people are less “underwater” than a year ago but they are still essentially stuck in their current home.

But a new report by Zillow shows that one third of all homes are owned “Free and Clear” with no mortgage at all.

Demographics, home prices and geographical location all seem to play into “free-and-clear” home ownership, according to Zillow’s survey. Obviously, the longer someone owns a home, the more likely they are to have paid off a mortgage. When looking at free-and-clear ownership rates as a percentage of homeowners in various age groups, however, Zillow found 34.5 percent of 20- to 24-year-old homeowners are free of mortgages. This represents an upwardly mobile block of homeowners that can sell their homes and purchase a new one.

What Happened to Rates Last Week?

new home loan colorado

Mortgage backed securities (MBS) gained +2 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move sideways. We had our highest mortgage rates on Friday morning and our lowest rates on Wednesday.

We had a fairly light week for economic data which was largely ignored by the markets. The major driving force were the U.S. Treasury auctions. Both the 10 year note and 30 year bonds saw a pull-back in demand compared to the last auctions. This meant that the U.S. had to pay a higher rate to borrow funds. We still pay less than any other country but the slight uptick in borrowing costs pressured all bonds. Mortgage rates are based on Treasury’s but mortgage rates were pressured upward after the results of the auctions were released as all bonds were impacted.

But bonds recovered as the European Central Bank (ECB) did not change their rates and comments by the ECB President added some uncertainty to the market place as he stated the ECB has done what it can do and it was now up to the political parties for each country. This helped mortgage backed securities.

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.

new 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 denverVince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
Fax: 877-840-0965
vince@coloradomortgageguy.com
10952 S. Pikes Peak Dr.
Parker, CO 80134
www.coloradomortgageguy.com

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
1/7/2013

Experts Bullish on Housing:

Home prices are now rising at their fastest pace since 2005. Housing bulls are running again, pointing to rising construction starts, rising home sales and falling mortgage delinquencies.

“Low prevailing mortgage rates, the limited supply of existing homes for sale (either due to the few foreclosure completions or the number of underwater borrowers who cannot sell), and the anemic levels of new home construction are facilitating affordability and feeding demand,” noted analysts at Fitch Ratings. “These factors are offsetting weak fundamentals that would otherwise hinder home price growth, such as high structural unemployment and lackluster wage growth.”

With economic growth starting to pick up in 2013, so will mortgage rates. Mortgage rates directly correlate with economic growth. As the economy grows, so will rates. But is that a bad thing for housing? Actually, its not.

Historically, when mortgage rates start to trend upward, purchasers finally “get off the fence” and pull the trigger on that next home particulary with home prices rising. Plus, the uptick in mortgage rates that results from a growing economy will still be relatively low compared to other periods when the housing market flourished. It will certainly dampen the refinance activity but will spur purchase activity.

What Happened to Rates Last Week?

colorado mortgages

Mortgage backed securities (MBS) lost -83 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move much higher. We had our highest mortgage rates on Friday morning and our lowest rates on Monday morning.

We had a holiday-shortened week and light trading volumes until Wednesday. Wednesday was our first big trading day with all of the participants back at their desk for the first time in two weeks. And when they got back, many of them pulled their funds out of their parking spot in bonds and put that money back to work as stocks had their single best week in over a year. This in turn pressured MBS pricing and pushed mortgage rates higher.

As usual, we had a mixed bag of economic data. Both ISM Manufacturing and Non-Manufacturing were stronger than expected. Also, Auto Sales and the ADP Private Payroll report were strong. These reports show economic growth and therefore are a negative for bonds. Bonds are what drive mortgage rates, so this pushed rates higher. The Unemployment Rate moved upward from 7.7% to 7.8%. This negative economic news did help bonds recover from their worse levels.

But the biggest catalyst of the week was the release of the Federal Open Market Committee’s (FOMC aka “the Fed”) minutes from their last meeting. In that report, the market learned that some of the voting members were discussing ending their massive Treasury bond buying program earlier than the Fed had guided. While this was not an official policy change, the fact that they were at least discussing it spooked the bond markets as the Fed is the single largest purchaser of Mortgage Backed Securities and Treasuries. The market reacted by selling off bonds and forcing mortgage rates higher.

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.

mortgages rates colorado

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 denverVince Reece
Senior Loan Officer
Office: 303-840-0966
Cell: 303-818-0699
Fax: 877-840-0965
vince@coloradomortgageguy.com
10952 S. Pikes Peak Dr.
Parker, CO 80134
www.coloradomortgageguy.com

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc

New Foreclosures Plummet:

New Foreclosure filings drop 22%.

The housing market is improving, no question. Home prices are rising, interest rates are low, inventory levels have fallen and fewer borrowers are falling behind on their mortgage payments. All of this helped to temporarily put a curb on new foreclosure filings by banks in October (the most recent data published).

Lender Processing Services reported that the decline also has to do with changes in mortgage servicing that went into effect in September under the $25 billion mortgage settlement. Servicers are now required to give borrowers a 14-day notice in writing before referring a loan for foreclosures. Those letters began going out in September.

Another reason for the drop in new foreclosures may be a surge in loan modifications involving principal reduction. These are also mandated by the mortgage servicing settlement. Principal reduction modifications jumped 62 percent from October to November.

Regardless of the reason, the fewer homes on the market at depressed prices, the better it is for the housing market.

What Happened to Rates Last Week?

short sales denver

Mortgage backed securities (MBS) lost -40 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher. We had our highest mortgage rates on Friday and our lowest rates on Wednesday.

We had a mixed bag of economic data last week:
The ISM Manufacturing Index (representing 1/3 of our economy) was much weaker than expected and showed contraction in that sector. However, the ISM Services Index (representing 2/3 of our economy) was much stronger than expected showing economic expansion. Private Payrolls were weaker than expected but the Unemployment Rate and the more closely watched Non-Farm Payrolls data was better than market expectations.

MBS sold off Friday morning on the strength of Non-Farm Payrolls report which gave us our highest mortgage rates of the week.

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.

colorado va mortgage

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 denverVince 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

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
11/19/2012

Get Your FHA Mortgage Before Costs Go Up:

The Federal Housing Administration (FHA) , facing a $16.3 billion deficit, will increase mortgage fees next year. FHA, the primary source of funding for first-time home buyers and those with modest incomes, said it would raise the premiums it charges on loans it guarantees by 10 basis points, adding, on average, about $13 per month to a borrower’s cost.

The FHA’s role in the mortgage market has expanded rapidly since the U.S. housing bubble burst. It now insures about 1.2 million mortgages, supporting about 15 percent of all U.S. home loans, up from 5 percent in 2006. It is often the preferred loan choice among first time homebuyers as it gives them a lower down payment option compared to conventional financing through Fannie Mae or Freddie Mac.

This round of fee increases could just be the first step in higher costs for FHA insured mortgages, so it might be the right time to take advantage of the lower rates and fees that are in place now before they go up.

What Happened to Rates Last Week?

colorado fha loan

Mortgage backed securities (MBS) lost -27 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move slightly higher. We had our highest mortgage rates on Thursday and our lowest rates on Tuesday morning.

It was a holiday-shortened week with the bond market closed in observance of Veteran’s day. MBS traded in a fairly narrow range for most of the week. Pricing was supported by a very strong 50 day moving average and capped by our 10 day moving average.

We had some very mild inflationary news as measured by both the Consumer Price Index and the Producer Price Index. They were both very tame on a month-over-month basis. Retail Sales were a tad lighter than expected and some regional manufacturing news was much weaker than expected. But the driving force for mortgage rates was the market’s concern over the fiscal cliff. Essentially, as the market interprets the statements of our political leaders – the markets will determine if these statements are positive or negative towards a compromise that will actually work and will not only stave off the fiscal cliff but also is an actual solution (as opposed to just window dressing and kicking the can down the road).

If traders think that actual progress is being made in the negotiations, then bonds will sell off (pushing up rates). If traders think that the negotiations are going poorly then bonds will rally (lowering rates).

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.

fha mortgage 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 denverVince 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

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
11/12/2012

Consumer Sentiment Hits Five Year High:

U.S. consumer sentiment rose to its highest level in more than five years in November as consumers felt more optimistic about employment prospects and the outlook for the overall economy, a survey released on Friday showed.

The Thomson Reuters/University of Michigan preliminary reading on the overall index on consumer sentiment came in at 84.9, up from 82.6 the month before.

“More consumers expected good rather than bad times financially in the economy in early November, not only for the year ahead but over the next five years as well,” survey director Richard Curtin said in a statement.

“This was the most positive outlook for the overall economy in more than five years,” he said.

What is the number one factor for housing demand? Is it a low interest rate? Is it location, location, location? Is it low home prices? No, the number one factor that drives housing is how a consumer feels about their current and future financial situation. So, it is great news for the housing market that Consumer Sentiment has hit a five year high.

What Happened to Rates Last Week?

colorado mortgage rates

Mortgage backed securities (MBS) gained +42 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move slightly lower. We had our highest mortgage rates on Tuesday and our lowest rates on Friday.

It was a very volatile week with large pricing swings. MBS moved +119 basis points from our lowest levels to our highest levels. Much of that volatility had to do with the election and the bond markets trying to position themselves ahead of what appears to be the impending “fiscal cliff” that is coming. MBS also reacted sharply to comments made by the President of the European Central Bank that growth in Germany and in the EU would be much slower than originally anticipated.

On the U.S. front, we had a very light week for economic data but the reports that were released were positive in nature as we saw very strong ISM Servicing, Consumer Sentiment and Wholesale Inventories.

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.

colorado home loan

I will be watching these reports closely for you and let you know if there are any big surprises:

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 denverVince 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

mortgage update denver colorado

New Home Sales Best In Over Two Years:

New U.S. single-family home sales surged in September to the highest level in nearly 2-1/2 years, further evidence the housing market recovery is gaining steam.

The Commerce Department said on Wednesday that new home sales increased 5.7 percent to a seasonally adjusted 389,000-unit annual rate — the fastest pace since April 2010, when sales were boosted by a tax credit for first-time home buyers.

The median price of a new home jumped 11.7 percent from a year ago.

In a separate report, the National Association of Realtors said that Pending Home Sales increased by 0.3% on a month-over-month basis and jumped 14.5 percent from a year ago.

What Happened to Rates Last Week?

va mortgage and home loan denver colorado

Mortgage backed securities (MBS) gained +7 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move sideways. We had our highest mortgage rates on Thursday and our lowest rates on Tuesday.

On the U.S. economic front, 3rd QTR GDP, Durable Goods Orders, and New Home Sales were released and came in a little better than expected. The Consumer Sentiment Index and Pending Home Sales but were lighter than market expectations but were still at very good levels. Overall, the economic data was positive and pressured mortgage backed securities.

However, MBS were trapped in a very narrow trading channel which had very strong support at our 50 day moving average and some decent resistance at our 10 day moving average. This caused MBS to move sideways.

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.

colorado mortgage rates

I will be watching these reports closely for you and let you know if there are any big surprises.

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 denverVince 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

mortgage update denver colorado

Average Home Price Jumps 11.3% from Last Year:

More good news about the housing market: Inventories are lower, prices are higher and the number of days a home is on the market has decreased.

According to the Existing Home Sales report that was just released, the median price paid for a previously occupied home rose 11.3 percent from a year earlier to $183,900.

Tight inventories have helped support home prices in recent months, which could help economic growth by making consumers more comfortable about their finances. The nation’s stock of existing homes for sale fell 3.3 percent last month to 2.32 million units. At the current pace of sales, inventories would be exhausted in 5.9 months, the lowest rate since March 2006, the National Association of Realtors said.

The median time previously owned homes spent on market was 70 days in September, down 30.7 percent from a year ago. Also helping prices – the share of distressed sales fell to 24 percent in September, down from 30 percent in the same month of 2011.

The low-hanging fruit has already been picked over the past year and now there are concerns that there may be a shortage of housing in some areas which has fueled buyer interest in acting sooner rather than later.

What Happened to Rates Last Week?

colorado mortgage rates

Mortgage backed securities (MBS) lost -60 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move higher. We had our highest mortgage rates on Thursday and our lowest rates on Monday.

On the U.S. economic front, Retail Sales, Business Inventories, Housing Starts, Building Permits and Existing Home Sales were all better than expected which was positive for our economic growth, but negative for MBS and mortgage rates.

But what really pressured Mortgage Backed Securities (and therefore caused your rates to increase) was news about Spain. Moody’s was widely expected to downgrade Spain’s bonds to junk status. But Moody’s surprised the markets and did not downgrade Spain. This in turn, led to a very strong Spanish bond auction where Spain sold more bonds than they planned and at a much lower rate than expected. This caused foreign investors that had been parking their money in nice and safe MBS, to pull their funds out of U.S. bonds and to put that cash back to work in Europe.

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.

mortgage company denver

I will be watching these reports closely for you and let you know if there are any big surprises.

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 denverVince 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