mortgage update denver colorado

Jobs data points the way to stronger housing:

Real Estate used to be about location, location, location. Now it is most certainly about jobs, jobs, jobs.

We received some welcome news on the jobs front last week:

The private sector added a seasonally adjusted 325,000 jobs during the month, up from 204,000 in November, payroll-processing firm ADP said:
 
job increase

It marked the biggest monthly gain since December 2010, and was stronger than expected. Economists surveyed by Briefing.com were forecasting a gain of 180,000 jobs for the month.  And the great news is that half of the gains were made by small business (companies with fewer than 50 employees).

Headline National Unemployment Rate Drops to 8.5%:

unemployment

The U.S. Unemployment Rate unexpectedly fell to 8.5 percent last month as job creation was more robust than expected, providing continued signs that the nation’s labor market is improving gradually.

Growth in manufacturing jobs helped offset a loss in government positions, while wages edged higher and the length of the work week also lengthened a bit. Job gains came from a variety of quarters: Transportation and warehousing surged by 50,000, the couriers and message industry rose 42,000, and retail added 28,000. Manufacturing grew by 23,000 and the hospitality industry continued its brisk pace, adding 24,000 jobs in December and 230,000 over the past year at food and drinking establishments. 

What Happened to Rates Last Week: 
 
colorado mortgage rates

Mortgage backed securities (MBS) gained +37 basis points from last Friday to the prior Friday which moved mortgage rates lower.

Once again, we had much better than expected U.S. economic data with ISM Services, Total Vehicle Sales, ADP Payrolls, Non-Farm payrolls and Unemployment data.

Normally, these type of strong readings would cause bonds to sell off and your mortgage rates to rise. But once again it was the “fear factor” that kept traders buying bonds regardless of the strong U.S. economic data.  Traders simply wanted a safe place to put their funds due to continued concerns over Europe and Iran’s threat to close down a major oil route.

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 rates

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

6 ways to retire without a mortgage

Paying off a home loan by the time you stop working can mean greater financial security. Whether you start early or later in life, there’s more than one approach to consider.

Admit it: Whether you’re 35 or 65, the prospect of retiring without a mortgage is an attractive one. No more monthly checks to your lender means extra money to spend on having fun once you exit the workforce. After years of punctual principal-and-interest payments, it’s the least you deserve, right?

There are several smart ways to retire without a mortgage. We’ve come up with six that fit a variety of retirement scenarios. Some approaches benefit from an early start — so if you are able, try to plan ahead. Other mortgage-free-retirement options can be put into effect even if you’re close to collecting Social Security.

Some retirees don’t mind a mortgage, be it for the tax write-off or to keep too much money from being tied up in home equity. But if your goal is the peace of mind that comes with paying off your loan before you reach retirement, check out these six ways to retire without a mortgage.

1. Make extra mortgage payments
Over time, a few bucks here and there tacked on to your mortgage payment can translate into thousands of dollars saved on interest and years shaved off the repayment period. The trick is to find small ways to cut corners on other household expenses so you can apply those modest savings toward your mortgage. Simply swapping out traditional incandescent light bulbs for compact fluorescent lights, for example, can save you $50 a year in energy costs. A programmable thermostat can save you up to $180 annually.

A little extra goes a long way. A $200,000 mortgage at 6% over 30 years works out to a monthly payment of about $1,200 (excluding taxes and insurance). You’ll pay just over $231,000 in interest alone. But put an extra $100 a month toward the same mortgage and you’ll save nearly $50,000 in interest and retire the loan five and a half years early.

2. Refinance your mortgage
A surefire way to trim the bill for your home loan is to refinance your mortgage to a lower rate for an equal or greater period of time. You’ll enjoy reduced payments and less strain on your bank account. Not a bad idea if money is tight. What you won’t enjoy is a mortgage-free retirement.

To pay off your mortgage early via refinancing, you’ll need to switch to a shorter-term loan. In 2011, a popular refi option for homeowners who weren’t underwater was going from a 30-year mortgage to a 15-year loan.

Let’s say you have 25 years left on a 30-year mortgage at 6% and still owe $175,000. You’d pay about $163,000 in interest over the remaining quarter-century. For just $167 more per month, plus one-time closing costs, you could refinance to a 15-year mortgage at 4% and save $105,000 in interest. And, of course, you’d be mortgage-free a decade earlier. (Does refinancing make sense for you? Check with MSN Money’s calculator.)

3. Downsize your home
Think about it: At a time when you’re supposed to be enjoying the simple life, do you really need a formal living room, separate dining room and two spare bedrooms that you never set foot in? If your answer is no, think about downsizing your home.

The beauty of downsizing to a smaller home in the same area is that you don’t need to say goodbye to your friends, family and community. Of course, beauty can also be found in the fact that you might be able to pay cash for your new abode. That means no mortgage.

And don’t limit your notion of downsizing. Just because you spent the past 30 years in a traditional ranch doesn’t mean you need to purchase another ranch with less square footage. Check out conventional alternatives (condos, townhouses) as well as unconventional options (houseboats, RVs and even tiny homes).

4. Relocate to a cheaper city
Can’t find the right place at the right price to retire in your hometown? Move somewhere cheaper. Sure, there will be sacrifices, but what you’ll give up in familiarity you’ll make up for financially. The best places to retire combine ample activities with affordable real estate. And moving to an affordable locale will boost the odds that you won’t have to take out a new mortgage.

Home prices aren’t the only factor. Consider property taxes and homeowners insurance premiums as well. Both affect the overall affordability of a home. In New Jersey, for example, property taxes and insurance premiums combined average $7,270. You’d pay just $1,444 in, say, Kentucky, one of the 10 most tax-friendly states for retirees. Some state and local governments reduce or even waive property taxes for residents 65 and older.

Feeling adventurous? You might be able to pay even less for a home and enjoy lower living expenses if you retire overseas. Look into bargain-priced and retiree-welcoming countries such as Belize, Mexico, Panama and Vietnam.

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

Rate on 30-year mortgage down to record 3.91 pct.
January 5, 2012 10:37 AM ET
By DEREK KRAVITZ

WASHINGTON (AP) – 2012 looks to be another year of opportunity for the few who can afford to buy or refinance a home.

The average rate on the 30-year fixed mortgage fell to 3.91 percent this week, Freddie Mac said Thursday. That matches the record low reached two weeks ago.

The average on the 15-year fixed mortgage ticked down to 3.23 percent from 3.24 percent. That’s up from 3.21 percent two weeks, also a record low.

Mortgage rates are lower because they tend to track the yield on the 10-year Treasury note, which fell below 2 percent this week. They could fall even lower this year if the Fed launches another round of bond purchases, as some economists expect.

Still, cheap mortgage rates have done little too boost the depressed housing market. For eight straight weeks at the end of 2011, the average fixed mortgage rates hovered around 4 percent. Yet many Americans either can’t take advantage of the rates or have already done so.

High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don’t want to sink money into a home that they fear could lose value over the next few years.

Previously occupied homes are selling just slightly ahead of 2010’s dismal pace. New-home sales in 2011 will likely be the worst year on records going back half a century.

Builders are hopeful that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose in December to its highest level in more than a year.

But so far, rates are having no major impact. Mortgage applications have fallen slightly in recent weeks, according to the Mortgage Bankers Association.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.

For the five-year adjustable loan, the average rate declined to 2.86 percent from 2.88 percent. The average on the one-year adjustable loan rose to 2.80 percent from 2.78 percent.

The average fee on the five-year adjustable loan rose to 0.7 from 0.6; the average on the one-year adjustable-rate loan was unchanged at 0.6.

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

mortgage update denver colorado

Pending Home Sales Hit 19 Month High

The number of Americans who signed contracts to buy homes in November rose to the highest level in a year and a half. The best reading on pending homes sales since a federal home-buying tax credit expired appeared to encourage traders on Wall Street.

The Realtors group said Thursday that its index of sales agreements jumped 7.3 percent last month to a reading of 100.1. A reading of 100 is considered healthy. The last time the index was that high was in April 2010, one month before the tax credit expired. 

Contract signings usually indicate where the housing market is headed. There’s a one- to two-month lag between a signed contract and a completed deal.

Homes are the most affordable they’ve been in decades. Long-term mortgage rates are at historic lows and prices in most metro areas have tumbled since late 2006.

What Happened to Rates Last Week:

home loan colorado

Mortgage backed securities (MBS) gained +95 basis points from last Friday to the prior Friday which moved mortgage rates lower.

We had much better than expected U.S. economic data.  Pending Home Sales, Consumer Confidence, and the Chicago PMI were all very strong. 

Normally, these type of strong readings would cause bonds to sell off and your mortgage rates to rise.  But last week was a holiday shortened week that saw very low volumes.

Traders simply “parked” their funds into the safe-haven of bonds over the holiday week which increased demand for bonds and temporarily lowered mortgage 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.  I will be watching these reports closely for you and let you know if there are any big surprises:

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 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

mortgage update denver colorado

New Home Sales Continue To Rise:

Investors cheered yet another U.S. report showing signs of improvement in the housing market.
The Commerce Department report showed US new home sales rose for the third straight month in row, increased by 1.6% to a seasonally adjusted annual rate of 315,000 from October.

Even as the pace of gain was smaller than 2.6% forecast by economists, investors took comfort in that housing data released in recent days have started to show stabilization, and given that the housing market is one of a major contributors to the economy, it could provide some support for the economic growth next year.

New homes account for just a fraction of the housing market, but they have a big impact on the economy. Each new home built creates roughly three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

What Happened to Rates Last Week:

denver mortgage

Mortgage backed securities (MBS) lost -82 basis points from last Friday to the prior Friday which moved mortgage rates higher.

We had a mixed bag of U.S. economic data.  The 3rd quarter GDP number was revised downward from 2.0% to 1.8% but Durable Goods Orders, Initial Jobless Claims and New Home Sales were much better than expected.
We saw strong demand for the U.S. 2 and 5 year Treasury auctions but demand for the 7 year Treasury auction fell sharply which was a negative for mortgage rates.

Traders sold off MBS on the positive economic news and the relatively weak 7 year Treasury auction which pushed 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.  I will be watching these reports closely for you and let you know if there are any big surprises:

denver mortgage company

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

Go Caroling Day

On December 29, 2011, in Uncategorized, by admin

mortgage update denver colorado

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

Stocks rise on manufacturing, housing reports

A gauge of pending home sales jumps more than predicted. First-time unemployment claims rise, but the 4-week average falls to a 3-year low. Midwest manufacturing activity declines less than forecast.

By TheStreet Staff on Thu, Dec 29, 2011 7:46 AM
By Kaitlyn Kiernan

Updated at 10:50 a.m. ET

U.S. stocks were rising Thursday after better-than-expected​ reports on manufacturing and housing boosted sentiment on Wall Street heading into the final days of trading in 2011.

The Dow Jones Industrial Average ($INDU +0.71%) was up 97 points, or 0.8%, to 12,248. The S&P 500 ($INX +0.69%) was up 9.9 points, or 0.8%, at 1,260, and the Nasdaq ($COMPX +0.54%) was rising 15 points, or 0.6%, to 2,604.

The National Association of Realtors said its pending home sales index, which measures the number of home sale contracts, jumped 7.3% to 100. 1 in November from a revised 93.3 in October. It’s the highest level since April 2010, when a tax credit deadline encouraged buyers to close deals. Economists had expected a 2% increase.

The Institute for Supply Management of Chicago said its Purchasing Managers Index, a measure of manufacturing activity in the Midwest, slid to 62.5 in December from the previous month’s 62.6. However, that was better than the 61 economists had expected.

The number of Americans filing for first-time unemployment benefits rose after three weeks of declines. Initial jobless claims rose by 15,000 to 381,000 during the week ended Dec. 24 from a revised 366,000 in the previous week, the Labor Department said. Economists had expected to see claims rise to 375,000 from the originally reported 364,000 the prior week, according to Thomson Reuters.

Despite the gain, the four-week moving average of claims declined by 5,750 to 375,000 from the previous week’s revised average of 380,750. That’s the lowest level since June 2008, according to Bloomberg.

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

mortgage update denver colorado

Job Claims, Factory Data Suggest Recovery Picking Up Steam:
Government reports on weekly jobless claims, manufacturing activity and inflation offered fresh evidence the U.S. economic recovery is picking up steam.

New U.S. claims for unemployment benefits dropped to a 3 1/2 year low last week, a government report showed on Thursday, suggesting the labor market recovery was gaining speed. Initial claims for state unemployment benefits dropped 19,000 to a seasonally adjusted 366,000, the Labor Department said. That was the lowest level since May 2008.

A gauge of manufacturing in New York State showed growth accelerated in December to its highest level since May as new orders improved, the New York Federal Reserve said in a report on Thursday. The survey of manufacturing plants in the state is one of the earliest monthly guideposts to U.S. factory conditions. The gain in December added on to improvement last month that pulled the index out of a five-month contraction.

Wholesale prices rose a modest 0.3 percent last month, as companies paid more for such items as food and pharmaceuticals. But energy prices barely rose, keeping inflation in check.
Most economists say they think inflation has peaked and will slowly decline next year. That’s because prices for oil and many agricultural commodities have fallen from their highs this spring. Slower growth in China and a possible recession in Europe have reduced global demand for energy and other goods.

Lower price growth means consumers will have more buying power, potentially boosting consumer spending. The jump in gas and food prices earlier this year limited the ability of consumers to buy other goods, thereby slowing the economy.

Consumer spending rebounded in the July-September quarter as prices eased. The stronger spending helped increase growth to an annual rate of 2 percent from a slight 0.9 percent in the first half of the year. Economists expect consumer spending to rise again in the last three months of this year and think growth could top 3 percent. Federal Reserve policymakers, like many private economists, predict inflation will fall next year. That would give the central bank more latitude to hold down interest rates and potentially take other steps to stimulate the economy.

Tame inflation, improved manufacturing, increased consumer demand and super-low mortgage rates all add up to big positives for the housing market.

What Happened to Rates Last Week:

colorado mortgage rates

Mortgage backed securities (MBS) gained +67 basis points from last Friday to the prior Friday which moved mortgage rates lower. Once again, the U.S. saw much better than expected economic data.
Both the N.Y. Empire and Philly Fed manufacturing data saw big increases and the Initial Weekly Jobless Claims fell below 390K.  We also saw very tame results in both the Consumer Price Index and the Producer Price Index which point to reduced inflationary pressure.
MBS rallied in the later part of the week on the heels of two very successful U.S. Treasury auctions.  Both the 10 and 30 year auctions saw very strong demand which pushed rates lower.

This was due to a growing concern that the recent agreement out of the European Summit would not be enough to stem the tide in Europe. This concern caused investors to snap our bonds even though the interest rates and returns are very low. Foreign investors simply want a place to put their funds, knowing that they will get those funds back.

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:

colorado 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

Rebound in Housing Industry

On December 12, 2011, in home loan colorado, by admin

mortgage update denver colorado

Housing Industry Rebound:

After half a decade of withering sales and slumping prices, there are strong and diverse signs that the single-family housing market is poised for a rebound.

In some metropolitan areas, the market has bottomed, with both sales and prices on the rise and foreclosures on the decline.

This contrarian — and largely overlooked — thesis flies in the face of the persistent gloom that has nagged the industry since 2007, when the subprime crisis flared.

Industry analysts and players cite a number of reasons — some traditional (employment), others unique to the post-credit bubble era (foreclosures)  — for the long-awaited sea change. An analysis of industry and government data also support the forecast.

“It has become increasingly apparent to us that the pieces for a housing rebound next year are beginning to fall into place,” declared Barclays Capital analyst Stephen Kim in a recent note to investors.

Proponents admit that the nascent rebound could easily be derailed, but stress that after years of government efforts to support sales and prices as well as the volatile impact of foreclosures, the market has regained a measure of normalcy.

“With the exception of really hard-hit markets, the vast majority is ready to turn around,” adds Jerry Howard, president and CEO of the National Association of Home Builders, NAHB. “The Washington, D.C., area is not only ripe for recovery, they need to start building units.”

There’s been little conventional, however, about this housing slump, which is one reason it’s had so many false bottoms. Among its many firsts — housing starts fell through 1 million annual units, foreclosures topped 2 million in three consecutive years, and home prices declined on a national basis.

The catalysts to recovery are mostly the same: for potential buyers, residential rents have now risen enough to consider buying; existing-home inventory is the lowest in five years, while that of new homes is at a 40-year low; affordability is at a record high; delinquencies have peaked; consumer confidence is on the rise ; and job growth is accelerating.

For investors, with a continuation of the gold rally in question, real estate is beginning to look like a viable inflation hedge alternative, while rising rents mean greater profits.

Finally, there’s the intangible fatigue with bad news, and a desire to end the negative feedback loop.

“We believe there is sizable housing demand that could be released into the market,” says Lawrence Yun, chief economist of the National Association of Realtors, NAR.

The NAR is forecasting existing home sales will rise 5 percent in both 2012 and 2013; prices will edge up 2 percent in each of those two years, then 4 percent in 2014.

The NAHB is forecasting a 5.1-percent increase in new home sales and a 10-percent increase for new home starts in 2012.

Jobs, Jobs, Jobs

A turnaround in the housing market will require continued improvement in the job market.

The economy has created jobs 13 months in a row for a total of almost 1.9 million. Weekly jobless claims have been routinely below the key level of 400,000, and the national jobless rate is down to 8.6 percent.

There are already signs in some markets that an improving employment picture is boosting housing demand and sale prices.

In cities such as Tampa, Fla., South Bend, Ind., Grand Rapids, Mich., Raleigh, N.C., Wichita, Kan., and Green Bay, Wis.., the median sales price of an existing single family home increased 1-2 percent in the third quarter, during which time the jobless rate and/or payrolls growth improved dramatically.

Even in the Cape Coral-Fort Myers, Fla. metropolitan area — considered the epicenter of the foreclosure crisis a few years ago — prices were just 1.4 percent lower in the third quarter than the previous year.

A new index by the NAHB and First American, the Improving Markets Index, IMI, launched in September, tracks housing markets throughout the country that are showing signs of improving economic health. Thirty cities – including San Jose, Pittsburgh, New Orleans and Winston-Salem, N.C. – are showing growth in permits, sales and employment.

In San Diego — where in the last year the jobless rate has fallen from 10.4 percent to 9.7 percent and 24,000 jobs have been added — home inventory is down to two months; in some areas of San Francisco (9.4 vs. 10.3 percent), it is one month.

More broadly, 40 percent of all states showed existing home sale increases on both a quarterly and annual basis in the third quarter, according to National Association of Realtors data. That includes high foreclosure-rate states, such as California, Georgia, Michigan and Utah. All but six states showed double-digit gains year over year.

What Happened to Rates Last Week:

home loan colorado

Mortgage backed securities (MBS) lost -20 basis points from last Friday to the prior Friday which moved mortgage rates higher. MBS traded in a very tight range for the week. We received much better than expected economic data which normally pressures mortgage rates. ISM Services, Initial Jobless Claims, Wholesale Inventories and Consumer Sentiment all came in stronger than market expectations.
MBS sold off on Friday (causing rates to increase) after the European Union Summit released details of their new agreement with Eurozone countries.  This removed some of the “flight to safety” premium that has kept mortgage rates low. 

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:

colorado home loan

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

mortgage update denver colorado

Pending Home Sales Pop:

Potential home buyers came out of the woodwork in October, signing contracts to buy existing homes at a higher-than expected pace.

Pending home sales jumped 10.4 percent compared to September, according to the National Association of Realtors, with the biggest gains in the Midwest, up 24 percent. The Northeast also saw sizeable gains, as did the South. Only out West did buyers stay on the sidelines, with pending home sales there basically flat month to month.

“Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows, and there is a pent-up demand from buyers who normally would have entered the market in recent years,” said Realtor chief economist Lawrence Yun. “We hope this is indicates more buyers are taking advantage of the excellent affordability conditions.”

This data continues the string of positive housing data with New Home Sales up 1.3% on a monthly basis and Existing Home Sales up 13.5% on a yearly basis.

What Happened to Rates Last Week:

home loan colorado

colorado home loan

Mortgage backed securities (MBS) gained +58 basis points from last Friday to the prior Friday which moved mortgage rates lower. MBS traded in a very tight range for the week. We received much better than expected economic data which normally pressures mortgage rates. Pending Home Sales, Manufacturing, Vehicle Sales, and Unemployment data all surpassed the market expectations and put to bed the concept of a “double-dip” recession for the United States. MBS made all of their weekly gains on Friday afternoon. This gave consumers the best mortgage rates of the week. This was the result of continued concern over the European debt crisis and traders seeking to park their money in the safety of U.S. bonds over the weekend. 

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:

home loans 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 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