mortgage update denver colorado

New York Times: Bottom Near for Housing

For real estate, some economists say, an end to the seemingly endless decline in housing values might be in sight.

Few analysts expect housing prices to rebound anytime soon. But quite a few are predicting that the market is close to the moment when things will stop getting worse, which will be a major improvement all by itself. “By far the bulk of the downturn of housing prices is beyond us,” said Paul Dales of Capital Economics.

“There are some amazingly favorable signs. Housing is the most undervalued it’s been in 35 years,” Mr. Dales said. “At some point, it’s going to do very well.”

Peter Muoio, senior principal of Maximus Advisors, says he thinks the market has already bottomed, although he expects it to bounce around in a narrow range for a few years rather than recovering. And James F. Smith, chief economist for the investment firm Parsec Financial and a rare housing bull, is predicting a 25 percent climb from here by mid-decade.

“There’s a lot of pent-up demand for housing and someday it will be unleashed,” Mr. Smith said, adding: “Your guess is as good as mine when it will come.”

What Happened to Rates Last Week:

colorado mortgage rate

Mortgage backed securities (MBS) jumped another +44 basis points last week after rising +47 basis points the prior week which pushed 30 year fixed mortgage rates to their best levels of 2011.

U.S Treasuries and Mortgage Backed Securities both saw very strong demand as another rating agency once again downgraded Greece’s credit rating which heightened concerns over the very real threat that Greece and a couple of other counties in the European Union will have to default on their massive debts. We also got a huge dose of much weaker than expected U.S economic data. The national Unemployment Rate increased and Factory Orders, Vehicle Sales, and other reports were much weaker than expected which also helped MBS pricing and helped to improve mortgage rates.

What to Watch 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 rate

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. 

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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