mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc
06/10/2013

New Home Sales to Increase Even With Higher Rates:

The housing recovery is on a normal trajectory and gradual increases in interest rates won’t slow it down, according to Home Builder Lennar CEO Stuart Miller.

With interest rates at historic lows, Miller expects that as rates move up, slight increases “are not going to stop the progress forward” of the housing recovery. “Housing continues to find its rebound and gain strength,” he said. “Over the past five years we have under-constructed for a growing household formation that has been stymied by economic downdrafts.”

Miller estimates that the country needed 1.25 million to 1.5 million homes per year over the past few years, but instead only about 500,000 homes were constructed. “We’re going to have to catch back up in order to serve the needs of a growing population,” he said. “We have to make up for the deficit we’ve had in the past years.”

The key force is a tight supply of housing exacerbated by a lack of land availability, he said. “What you’re seeing with the builders is an inability to really get the land that we need to be able to build the homes to meet the demand,” he said. “So you have inventories that are very, very low, and that is driving prices up.”

Miller also said that the cost of commodities for builders is a “mixed bag” and that prices of homes are rising faster than costs. “I don’t think you can read a lot from costs,” he said, adding that although costs of raw materials are going down, other factors, like labor, are getting more expensive.

“We’re starting to see a real recovery in housing that is not likely to be pulled back,” he said.

What Happened to Rates Last Week?

colorado mortgage rates

Mortgage backed securities (MBS) lost -55 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move upward for the sixth straight week. We had our highest mortgage rates on Friday and our lowest rates on Monday morning.

Manufacturing, as measured by the ISM Index contracted but offsetting that was an expansion in the servicing sector which represents 2/3 of our economy. But last week was all about jobs data and on Friday, we received the much anticipated Non-Farm Payroll Report. Economists were expecting a reading around 170K but traders had been trading at levels that would be reflective of a 150K range. So, when Non-Farm Payrolls came in at a better than expected 175K, MBS sold off which erased the small gains that we had for the week and drove mortgage rates higher for the sixth straight 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 home loans

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

The Housing Market Update
Plum Creek Funding Inc
06/03/2013

Pending Home Sales Surge Over 10%:

The National Association of Realtors reported that signed contracts to purchase a home increased 10.3% from this time a year ago. These are called “Pending Home Sales” because there is a signed contract but the home has not closed yet. On a month-over-month basis, Pending Home Sales increased 0.3%.

Sales Prices continue to shoot up and the number of Pending Home Sales would have increased even more if it wasn’t for a huge shortage in available quality inventory.

“The housing market continues to have gains from already very positive conditions. Pending contracts so far this year easily correspond to higher closed home sales in 2013,” said Lawrence Yun, chief economist for the Realtors.

“Because of inventory shortages, higher home sales will push up home values to the highest level in five years,” Yun said, adding that the national median existing-home price should increase close to 8 percent and exceed $190,000 in 2013.

There are also fewer distressed homes for sale. Banks have been doing more aggressive loan modifications, and some banks are reportedly holding foreclosed homes off the market, as home prices continue to rise.

What Happened to Rates Last Week?

colorado mortgage rates

Mortgage backed securities (MBS) lost -108 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move upward for the fourth straight week. We had our highest mortgage rates on Friday and our lowest rates on Thursday.

We had another very volatile week with large swings in MBS pricing. MBS continued to be pressured by growing sentiment that the Federal Reserve would begin to decrease the amount of monthly purchases of Fannie Mae, Freddie Mac and Ginnie Mae mortgage backed securities. The Fed is such a larger purchaser of these MBS that a pull-back in their monthly purchases would dramatically impact demand and traders are trying to front-run this pull-back.

We also had some very good economic reports. As our economy grows, bonds sell off. Chicago PMI, Consumer Sentiment, Consumer Confidence were all very strong and caused mortgage rates to rise. GDP was revised downward from 2.5% to 2.4% but it didn’t materially impact 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.

colorado va mortgages

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

The Housing Market Update
Plum Creek Funding Inc
05/28/2013

Home Prices Jump Most in Seven Years:

U.S. single-family home prices rose in March, racking up their best annual gain in nearly seven years as the housing recovery continues to provide a source of strength for the economy, a closely watched survey showed on Tuesday.

The S&P/Case-Shiller composite index of 20 metropolitan areas gained 1.1 percent in March on a seasonally adjusted basis, topping economists’ forecasts for 1 percent. Prices in the 20 cities jumped 10.9 percent year over year, beating expectations for 10.2 percent and the biggest increase since April 2006.

All 20 cities covered by the index saw yearly gains for the third month in a row. Average prices in March were back at their late-2003 levels.

For the first quarter of this year, the seasonally adjusted national index rose 3.9 percent, stronger than the 2.4 percent gain that was seen in the final quarter of last year.

What Happened to Rates Last Week?

colorado va mortgage

Mortgage backed securities (MBS) lost -83 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move upward for the third straight week. We had our highest mortgage rates on Friday and our lowest rates on Tuesday.

We had a very volatile week with large swings in MBS pricing. We traded in a very large range with a -166 BPS range between our highs and lows. Bonds (which include MBS) sold off on much better than expected Existing and New Home Sales, Initial Jobless Claims and Durable Goods Orders. So, mortgage rates were on a higher path last week.

But that was amplified by Ben Bernanke’s statements on Wednesday. As he discussed the potential to scale back on monthly MBS purchases if conditions continued to improve. Then, later that day, the minutes from the last FOMC meeting were released and it became clear that there is some discussion at the Fed of pulling back on MBS purchases as early as June. This caused bonds to sell off and 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.

home loan frederick, firestone, colorado

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

The Housing Market Update
Plum Creek Funding Inc
05/13/2013

Fannie Mae Profit Points to Growing Housing Market:

Remember Fannie Mae? They and Freddie Mac were both placed into receivership because they were loosing so much money but had to remain open because if they shut down there would be no mechanism to make and securitize mortgages to the vast majority of Americans.

Well, Fannie Mae is baaaaaack, posting it largest profit ever. Yes that’s right, they posted a bigger profit than even at the height of the housing boom.

Mortgage giant Fannie Mae has now been turning a profit for more than a year. In fact, it has turned record a profit: $8.1 billion in its latest quarter.

With Fannie Mae and its smaller cohort, Freddie Mac, turning so much profit, the push to dismantle them becomes far more complicated. Unlike several years ago, they are now making the government money at the same time that the feds considered winding them down.

The chief beneficiary of Fannie’s newly discovered riches is none other than the federal government—the same entity that bailed it out at the height of the financial panic nearly five years ago. Fannie Mae will pay the Treasury $59 billion by the end of this quarter, bringing its total tally of dividend payments to $95 billion—close to the $117 billion it originally drew.

Now that Fannie and Freddie are on solid footing again, they can begin to loosen up underwriting standards. But this time it will be small and responsible adjustments. Still, relaxing the guidelines even just a little could open the door for many potential new homebuyers that have been kept of out of the market.

What Happened to Rates Last Week?

denver new home loan

Mortgage backed securities (MBS) lost -89 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move upward for the second straight week. We had our highest mortgage rates on Friday and our lowest rates on Thursday morning.

We traded in a very thin range for the majority of the week as MBS were trapped in a narrow trading channel that saw very small daily movements (+1 to -7BPS) from Monday through Thursday. There were very few economic releases. The biggest report to hit the wires was Thursday’s weekly Initial Jobless Claims which were lighter than expected. This was good news for the economy and pressured bonds slightly. We had a 10 year Treasury auction which saw a pull back in demand but it really didn’t impact MBS pricing by the end of the day.

MBS really sold off on Friday, in the absence of any economic data. When MBS sell off, mortgage rates rise.

Why did they sell off? There were several reasons but lets focus on the two largest factors: First, the Treasury Secretary stated that we would not hit our debt ceiling again until later than the market had projected. Remember, MBS are trading higher than normal (better rates for you) due to fear and uncertainty about our debt. The fact that our deficit is doing better than expected is a negative for our bonds because it means that Congress will put off solving our larger issues longer.

Secondly, the Yen has absolutely tanked and that has made investment in other foreign markets more attractive than in the U.S.

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.

home loan highlands ranch

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

The Housing Market Update
Plum Creek Funding Inc
04/29/2013

Pending Home Sales jump 7% from a year ago:

Contracts to buy existing homes rose in March, and would have increased even more it it wasn’t for a historically low supply of for-sale listings nationwide.

The Pending Home Sales Index from the National Association of Realtors increased 1.5 percent month to month which was better than the 1.0 percent increase that economists expected. It is 7 percent higher than March of 2012.

“Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply,” said the Realtors’ chief economist Lawrence Yun in a release. “Little movement is expected in the near-term sales closings, but they should edge up modestly as the year progresses.

The lack of inventory is due to several factors but one of the newer trends is that many sellers are waiting to put their homes on the market because they are waiting to see how much further home prices will increase.

Regionally, the Realtors’ pending home sales index was unchanged in the Northeast from February, up 0.3 percent in the Midwest, up 2.7 percent in the South and up 1.5 percent in the West.

What Happened to Rates Last Week?

colorado mortgage rates

Mortgage backed securities (MBS) gained+39 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 Friday morning.

MBS were trapped in a very narrow trading channel for the past nine trading sessions which caused pricing to move sideways. But that certainly changed on Friday with the release of the GDP data. The first release (it will be revised two more times) of the first quarter GDP missed the mark and came in much weaker than expected (2.5% vs 3.0%).

Historically speaking, a national growth rate of 2.5% is very desirable. It shows growth without any major inflationary pressure. The market expectations for growth of 3.0% would have been inflationary and bonds hate inflation, so when this number came in lower than expected – bonds rallied as a result.

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 loans

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 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

The Housing Market Update
Plum Creek Funding Inc

Housing Recovery Shows Up In Job Gains:

Believe it or not, interest rates do not drive housing demand. Jobs do. We have had some of the hottest housing markets on record when Unemployment Rates were low but interest rates where high. Simply speaking – if you feel more secure about your job, you are more likely to purchase a home.

Friday’s Unemployment Rate dropped from 7.6% to 7.5% but more importantly, the economy added 165,000 non-farm jobs.

Stronger housing means more jobs, not just construction jobs, all jobs. When consumers feel more confident about the value of their homes, they spend more money. Their homes, after all, are likely their single largest investment.

They may not take the money out of their homes, but they just feel more financially comfortable, and that comfort sends them out spending. They also spend more on home improvement.

Residential construction jobs increased by just over 6,000 in April from the previous month, according to the Bureau of Labor Statistics, and residential specialty trade contracting jobs (plumbers, electricians, roofers, etc.) grew by over 7,000.

Retailers are also seeing the effects of housing growth. Homeowners spend an average $7,400 furnishing a newly built home, according to the National Association of Home Builders.

“Spending at furniture and appliance stores is finally coming back, which has meant more hires there since the start of the year,” added Swonk.

Home prices were up just over 10 percent nationally in February, according to CoreLogic, which continues to bring thousands of homeowners out from underwater on their mortgages. That has allowed more borrowers to refinance to lower monthly payments, which in turn gives them more spending money. It also gives them more confidence that they will be able to afford more in the coming year.

“Consumers’ views regarding the housing market have been increasingly more positive,” noted Fannie Mae’s chief economist Doug Duncan. “Our April National Housing Survey, to be released next Tuesday, is expected to show that the housing market is gradually approaching its sweet spot, as the share of consumers who believe that it is a good time to buy remains high while the share of those who think it is a good time to sell continues its upward trend witnessed over the past year.”

What Happened to Rates Last Week?

colorado home loan

Mortgage backed securities (MBS) lost -55 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move upward. We had our highest mortgage rates on Friday and our lowest rates on Wednesday morning.

We had a very volatile week for MBS with a -81BPS downward swing in pricing (worse rates for you) from Wednesday’ highs to Friday’s lows. This was primarily due to jobs related data.

The economic data was very mixed for the week. Chicago PMI (a key measure of manufacturing) showed contraction and was much weaker than market expectations. But the ISM Manufacturing report showed growth and was a little stronger than expectations. Personal Incomes were down but Personal Spending was up. Consumer Confidence was much stronger than expected too.

The Federal Reserve Open Market Committee (FOMC…aka “The Fed) left their key interest rate alone while the European Central Bank lowered their rate by a 1/4 point. The FOMC also stated that they would evaluate and adjust as necessary the size of their massive monthly Treasury and MBS bond purchases.

The two biggest moves of the week came off of jobs data. First, MBS shot up (better rates for you) on the much weaker than expected ADP Private Payroll report as traders tried to use that information to bet that Friday’s Unemployment data would be worse than expected. But Friday arrived…and traders had bet wrong.

The Unemployment Rate dropped from 7.6% to 7.5% but that’s not what traders look at. They look at the Non-Farm Payroll data which was much better than market forecasts. Plus, the prior period was revised upward significantly. This positive economic news caused MBS and bonds to sell off very quickly which drove up your 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.

home loan 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

mortgage update denver colorado

The Housing Market Update
Plum Creek Funding Inc

Bidding Wars are Back:

The bidding wars are back. Seemingly overnight, many of the nation’s major housing markets have gone from stagnant to sizzling, with for-sale listings drawing offers from a large number of house hunters.

In March, 75% of agents with broker Redfin said their clients’ offers were countered by rival bids, up from 56% who said so in late 2011.

The competition has been most intense in California, where 9 out of 10 homes sold in San Francisco, Sacramento and cities in Southern California drew competing bids during the month. And at least two-third of listings in Boston, Washington D.C., Seattle and New York generated bidding wars.

“The only question is not whether a new listing will get multiple bids but how many it will get,” said Kris Vogt, who manages 14 Coldwell Banker offices in the Sacramento area. One home in an Elk Grove, Calif., subdivision recently received 62 separate bids. The final sale price was for more than $150,000, well above its $129,000 asking price.

Homebuyers eager to purchase before home prices and mortgage rates rise are finding few homes for sale as sellers hold out for better deals, said Glenn Kelman, Redfin’s CEO. Even though home prices are on the rise, the balance between buyers and sellers has been thrown off balance, said Kelman.

“With buyers out in force and sellers cautious, the market is in an awkward ‘tweener’ phase,” he said.

What Happened to Rates Last Week?

colorado mortgage rates

Mortgage backed securities (MBS) gained +119 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move to lower. We had our highest mortgage rates on Monday morning and our lowest rates on Friday.

All U.S. based bonds (including MBS) rallied on two main factors: 1) Reduced risk of domestic inflation and 2) Global fear. Lets address the first factor: The economic releases were a major disappointment with just about every economic report coming in below market forecasts. Both ISM Manufacturing and Non-Manufacturing showed economic expansion but at levels that were significantly lower than recent trends. ADP Private Payrolls, Initial Jobless Claims and the Unemployment report missed the mark and really disappointed the markets. The Unemployment Rate dropped from 7.7% to 7.6% but that was due to the participation rate falling, not due to an improvement in the labor force. MBS rallied (giving you the best rates of 2013) on the Non-Farm Payroll data which came in significantly lower than forecasts.

The second factor was global fear. Economic reports showed an economic retraction in Europe and their European Central Bank said that they would be in an accommodative stance for a very long time. We saw weaker numbers out of Asia and the Bank of Japan announced yet another round of intervention. But the greatest factor was North Korea and the “saber rattling” which has traders very concerned that an event could escalate there. This all drives foreign funds into our bonds and temporarily helps our 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.

colorado mortgage broker

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

Pending Home Sales Rise 8.4%:

The National Association of Realtors reported that their index of Pending Home Sales rose 8.4% from February 2012 and was constrained only by the lack of inventory available for sale.

Thinking about buying a home in 2013? This is not the same market where you can take your time and view many different homes. Home prices are moving up and the number of available homes for sale that are in good condition are moving fast.

Lawrence Yun, NAR chief economist, said limited inventory is holding back the market in many areas. “Only new home construction can genuinely help relieve the inventory shortage, and housing starts need to rise at least 50 percent from current levels,” he said. “Most local home builders are small businesses and simply don’t have access to capital on Wall Street. Clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market.”U.S. home resales (the largest segment of the housing market) hit a three-year high in February and prices jumped, adding to signs of an acceleration in the housing market recovery.

More good news: Yun projects existing-home sales to rise about 7 percent in 2013 to approximately 5 million sales, which is near the current level of activity and the national median existing-home price is forecast to rise nearly 7 percent this year, while mortgage interest rates should remain historically low, but trend up slowly.

So, the industry experts are saying: 1) Good quality Inventory is moving fast and at 2) higher prices and 3) with mortgage rates rising throughout the year. What does this tell you?

What Happened to Rates Last Week?

colorado mortgage loan

Mortgage backed securities (MBS) gained 34 basis points from last Friday to the prior Friday which caused 30 year fixed mortgage rates to move to slightly lower. We traded in a fairly narrow range and had our highest mortgage rates on Monday morning and our lowest rates on Wednesday.

We had a mixed bag of economic news last week. On the plus side, Durable Goods Orders, New Home Sales, Pending Home Sales and Consumer Sentiment were all very strong. But on the negative side we saw weakness in Initial Jobless Claims, Consumer Confidence and Chicago PMI. This caused MBS to trade in a very well defined trading channel. This channel was capped by our 50 day moving average and supported by our 10 and 25 day moving averages.

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 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 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
3/18/2013

Jumbo Loans Availability and Rates Point To Growing Housing Market:

Even as mortgage rates begin to rise, the difference between conforming and jumbo loan rates is shrinking, and that is good news for buyers of higher-priced homes. Conforming loans are largely financed by Fannie Mae and Freddie Mac, and are valued at up to $417,000 — although they can be as high as $625,000 in some of the nation’s pricier markets.

Jumbo Loans are anything above that and are funded by banks or private investors. Rates used to be far higher for jumbo loans, but that is changing fast. As reported by the Mortgage Bankers Association, The spread between a jumbo and a conforming mortgage rate was as wide as 0.875 percent last summer. It has now dropped to between 0 and 0.25 percent as of Monday.

The jumbo market has heated up, as tight lending guidelines have drastically reduced consumer late payments, strategic defaults, and foreclosures, this gives investors confidence to buy jumbos again, which means lower rates for consumer borrowers.

The rebirth of jumbo securitizations is being driven not just by investor confidence, but by growth in jumbo originations, which increased after the conforming loan limit was lowered. Originations of non-agency jumbo mortgages jumped by over 19 percent in 2012 from 2011, according to Inside Mortgage Finance.

What Happened to Rates Last Week?

colorado jumbo loans

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

Retail Sales were much stronger than expected (1.1% vs est of 0.5%) and Initial Jobless Claims dropped again. These two positive economic reports pressured MBS. But offsetting that was very tame inflationary data from both the PPI and CPI reports and a much weaker than expected Consumer Sentiment Index (71.8 vs est of 78.2). The last report hit Friday and was responsible for a large increase in demand for MBS which in turn helped to improve 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.

jumbo loan 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
2/25/2013

Existing Home Inventory Drops to 13 Year Low:

What kind of housing market does the following scenario sound like? Home Prices are up 12.3% from 12 months ago, the inventory of available homes for sale are down 25.3% from a year ago and the number of units sold are up. Sound like a great housing market to be in for a seller, right? Well that is exactly the market that we are in right now.

The National Association of Realtors said on Thursday that existing home sales rose 0.4 percent last month to a seasonally adjusted annual rate of 4.92 million units. That was the second highest rate of sales since November 2009, when a federal tax credit for home buyers was due to expire.

Inventories were down 25.3 percent from January 2012. At the current pace of sales, inventories would be exhausted in 4.2 months, the lowest rate since April 2005.

The low inventories are also helping pushing prices higher. Nationwide, the median price for a home resale was $173,600 in January, up 12.3 percent from a year earlier.

With this positive housing market and interest rates that are still well below normal levels, the Spring housing market looks to be a strong one.

What Happened to Rates Last Week?

colorado home loan

Mortgage backed securities (MBS) gained +3 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 Wednesday.

We had a holiday-shortened week that saw the vast majority of economic data hit over a two day period. On the inflation front, both the Producer Price Index and the Consumer Price Index were very tame. Tame inflation is always good for bonds. We also saw an uptick in Initial Jobless Claims and very weak Philly Fed manufacturing data. This was all positive for bonds and for rates.

But offsetting that negative economic news were the release of the minutes from the last Fed meeting. These minutes showed an improved outlook on the economy. We also saw improvement in Existing Home Sales. This positive economic news is negative for bonds and rates.

As a result, mortgage backed securities traded in a very well-defined channel last 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.

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