Home Prices Increase Again:

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Single-family home prices rose more than expected in May according to the new release of the Standard and Poor’s/Case Chiller home price index.

The 20-city composite price index rose 0.5% in May and April was upwardly revised to an increase of 0.6%.  Economists had been expecting a smaller gain in the range of 0.2%.  While these monthly increases appear small, they do indicate a trend towards housing stability after the bottom in 2009.  The index showed a 4.5% increase on a year-over-year basis and it is the 14th straight month of improvement in this report.

What Happened to Rates Last Week:
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Mortgage backed securities (MBS) gained +66 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans.  The gains in mortgage backed securities (the only thing 30 year conventional mortgage rates are based on) were the result of concerns about the stability of our economic recovery.  While we had a week of stronger than expected housing data across the board, the market reacted to a lower than expected economic growth rate (GDP) and deflationary concerns. 

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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Contact Colorado Mortgage Guy
Plum Creek Funding, Inc.
303-818-0699 (Cell)
303-840-0966 (Office)
877-840-0965 (Fax)
www.coloradomortgageguy.com
www.plumcreekfunding.com
vince@coloradomortgageguy.com
19519 E. Parker Square Dr. Parker, CO 80134

Be prepared to slash prices if you want to sell

In today’s market, you have to price aggressively if you expect to attract multiple offers.
By Amy Hoak of MarketWatch

With no federal tax credit to entice buyers, today’s home sellers have to get even more serious about making a deal.

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That means pricing aggressively — low enough to compete with foreclosures in some markets. It’s a conversation that stings, said Summer Greene, a real-estate agent for a Better Homes and Gardens Real Estate brokerage office in Fort Lauderdale, Fla.

“It’s like telling them that their children are ugly,” she said.

Shopping for a Mortgage Colorado?

Many people with homes on the market already are slashing prices to catch buyers’ attention. Twenty-four percent of listings on the market as of July 1 had gone through at least one price reduction — that’s a 9% increase from the previous month, according to the most recent data from Trulia.com, a real-estate listings website.

Price cuts are more prevalent in some markets than others, and the average size of the cut varies, too. In Minneapolis, for example, 40% of the listings had at least one reduction and the average reduction was 9% of the listing price. In Las Vegas, 12% of the homes had price cuts, but the reductions averaged 15% off the listing price.

Colorado Mortgage Guy will shop for the best mortgage rates for your Denver home loan

Reducing their price is one way sellers are trying to weather the “tax-credit hangover” now affecting the country, said Tara Nelson, consumer educator for Trulia.com. Slashing the price is the one thing a seller can do these days to attract attention.

“There’s just not a whole lot of incentive right now for buyers to urgently buy,” Nelson said. Mortgage rates have been relatively low for a while, so buyers aren’t concerned they’ll miss that window, and inventory has been creeping up since April, she said. To be eligible for the homebuyer tax credit, buyers needed to have a contract on a house by April 30.

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Colorado Mortgage Guy
Plum Creek Funding
Office: 303-818-0699
vince@coloradomortgageguy.com
19519 E Parker Square Dr
Parker, CO 80134

www.coloradomortgageguy.com
www.plumcreekfunding.com

Foreclosure Rates Fall Again:
U.S. foreclosure rates fell for the third straight month according to RealtyTrac’s new report.  New foreclosure fillings in June dropped 2.81 percent from the previous month and 6.98 percent from the previous year.

While foreclosure rates are falling, they are still at high levels with 16 straight months of readings of over 300,000.  Still 410 out of every 411 homes are not in foreclosure, so there is still some strength in the housing market.

Consumer Prices Continue to Fall:
Consumer Prices fell for the third straight month, providing bargains for American Shoppers.

The Consumer Price Index, the government’s most closely watched inflation barometer, dipped 0.1 percent in June, according to the Labor Department. Less expensive energy bills were a big factor behind the drop. Prices for food items and airline fares also dropped last month.  Also, “core” consumer prices are holding near a 44 year low.

What Happened to Rates Last Week:
mortgage rate colorado

Mortgage backed securities (MBS) gained +44 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans.  Rate declined on the back of some weaker than expected economic data.  Manufacturing Data, Consumer Price Index and Consumer Sentiment all were much worse than market expectations.  Economic concerns helped to push investors towards purchasing MBS as a way to earn low yields in exchange for safety that you cannot find in the stock markets.

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:
mortgage rates 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.

Contact Colorado Mortgage Guy
Plum Creek Funding, Inc.
303-818-0699 (Cell)
303-840-0966 (Office)
877-840-0965 (Fax)
www.coloradomortgageguy.com
www.plumcreekfunding.com
vince@coloradomortgageguy.com
19519 E. Parker Square Dr. Parker, CO 80134