Employment Picture Continues to Help Housing:
mortgages rates denver

The national Unemployment Rate surprised forecasters by dipping below the important 9.0% mark.  The Unemployment Rate in February dropped to 8.9% and continued its downward trend from our peak levels which occurred just after our last recession.
Of particular note is the Non-Farm Private Payroll data which showed an increase of 192,000. This is very important for housing.  The housing mantra used to be “location, location, location”.

But now it is “jobs, jobs, jobs”.  Simply put, the lower the Unemployment Rate – the greater demand there is for housing.

What Happened to Rates Last Week:
mortgage rates colorado
Mortgage backed securities (MBS) gained +7 basis points from Monday’s open to Friday’s close which helped to move mortgage rates down slightly. Mortgage Backed Securities sold off in the middle of the week, causing mortgage rates to rise, on much stronger than expected economic data. However, in the end – it was all about oil prices as MBS sold off on Friday on concerns that higher gas prices would dampen our economic recovery.

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

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.

colorado real estate

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.

Brought to you by:

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

Why are so many people listing their houses now?
Once the tax credit expired (new contracts had to signed by April 30th) everyone expected that listings would go down.  But they haven’t…they have gone up.  With all of the negative media attention on housing it would be easy to consider that it is because the sellers are distressed in some way.  Maybe they lost their job or they are trying to sell the home before it goes into foreclosure.

But here is the real reason why listings are up:  Interest rates are at an all-time low.  Despite the constant bombardment of negative media coverage, the vast majority of existing homeowners are very credit worthy, live within their means and have stable income.  Experienced homeowners have seen interest rates in the 5’s, 6’s, and 7’s in the last several years.  And those that have owned homes for longer have seen double-digit interest rates.  So, they know that when interest rates are at an all time low – it is time to make a move.

The idea is that if they were ever going to move to a different school district, move up or down in size, etc. now is the time to do it.  Sure, they might get a little less for their house this year compared to what they might sell it for a couple of years down the road but that is more than offset by the huge savings in mortgage and interest payments.

This means that homebuyers also have attractive interest rates which is another good time to sell, because more people buy when interest rates are low.  Buyers are a little slower to “pull the trigger” on a sales contract because there is moderate amount of inventory around.  But many of these potential homebuyers already missed out on the tax credit window because they thought the government would keep extending it or maybe they just weren’t ready to enter the market yet.  Regardless that window of opportunity has shut.  Don’t miss this even bigger window of opportunity!

Mortgage rates can make a right turn at any second.  Mortgage rates are not low because of anything that the Federal Reserve, Treasury, or Obama administration is currently doing.  Mortgage rates are low because of global fear about the economy and financial system.  This causes banks and investors to hoard their cash and park it into nice, safe and boring mortgage backed securities.  You earn a very low interest rate in return for safety.  But the financial markets and the global economy will turn around, and when it does it will move mortgage rates up with it.
 
What Happened to Rates Last Week:
mortgage rates denver colorado

Mortgage backed securities (MBS) gained +19 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans.  Rate declined on fears of a U.S. double-dip recession.  Economic concerns help 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:

home loan denver colorado

Brought to you by:

Plum Creek Funding
Office: 303-818-0699
vince@coloradomortgageguy.com

19519 E Parker Square Dr
Parker, CO 80134

www.coloradomortgageguy.com
www.plumcreekfunding.com

President Signs 3-Month Extension of Tax Credit

On Friday, President Obama signed a law giving home buyers three extra months of the wildly popular tax credit that gives first-time home buyers $8,000 and previous owners $6,500.  These only apply to primary residences.

The catch?  This still only applies to purchase contracts that were executed prior to the April 30th deadline.  This just gives those individuals extra time to close.  It does not enable today’s signed contracts to qualify.

Unemployment Rate Drops:

The Unemployment Rate unexpectedly dropped from 9.7% to 9.5% in June.  The very closely watched Non-Farm Payrolls grew 42,000 after stripping away the temporary Census workers hired by our government.

Even though the headline Unemployment Rate dropped, the financial markets did not welcome the news.  The private sector just barely held its head above water with very small job growth.  Many economists and traders believe the number was skewed lower by a large number of people no longer looking for work.  Remember, the Unemployment Rate is a survey of those that are actively looking for work and can’t find it.

What Happened to Rates Last Week:
mortgage rates colorado

Mortgage backed securities (MBS) gained +42 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans.  Rate declined on fears of a U.S. double-dip recession.  Economic concerns help 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.

Brought to you by:

Plum Creek Funding
Office: 303-818-0699
vince@coloradomortgageguy.com

19519 E Parker Square Dr
Parker, CO 80134

www.coloradomortgageguy.com
www.plumcreekfunding.com

Tips: How to compare Colorado mortgage loans

You need to know four important features to shop for a Denver Colorado mortgage:

The term. Some mortgages have fixed rates for the entire term, some have variable rates that can change monthly or yearly, and others have a fixed rate for a certain number of years followed by a variable rate.
The rate. You’ll want to know the interest rate and the annual percentage rate (APR). The APR adds in points, fees and certain other charges, all expressed as a yearly rate to help you compare loans. If the rate is variable, ask how often it can change and how high your payments could go.

The points. A “point” is 1% of a mortgage. Typically, the more points the borrower pays, the lower the interest rate. But if you plan to sell in just a few years, you won’t recoup the upfront cost.

The fees. These may include origination or underwriting fees, broker fees, transaction costs and closing costs. Many reputable lenders will give you the estimate in advance. In any case, many of the fees are negotiable. Interest rates for a “no cost” or “no fee” mortgage will be higher. Fees are not always the same as closing costs.

Brought to you by:

Vince Reece
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

Tax Credits May See Extension:

The home buyer’s tax credit has been wildly popular. It gave both first time and previous home buyers a sizeable tax credit provided that they sign a purchase contract no later than the end of April and close no later than the end of June.

It was so successful, that pending home sales (contracts signed but not yet closed) rose 22.4% when compared to April 2009.  However, with increased underwriting turn times, many people that met the requirement by signing a contract before the end of April will not be able to close in time.  Under the current law, they would lose their tax credit.

Senator Harry Reid is offering an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 that would extend the closing time from June 30th to September 30th.  Note: If you did not sign a contract by April 30th then there is no extension for you.  It is only for those that signed a contract in time but just can’t close on time.  It remains to be seen if his proposal will pass, I will keep you posted.

Consumer Confidence Reaches a High Point:
According to a newly released report by Reuters/University of Michigan, their Consumer Confidence index rose again to a reading of 75.5.  This is the best reading this year and the best reading since January 2008.

It shows a picture that consumers are more confident in how they perceive their economic outlook. A higher consumer confidence number generally signifies that consumers are more willing to spend.  This is important because consumer confidence is one of the largest factors in home demand.

What Happened to Rates Last Week:
mortgage denver colorado

Mortgage backed securities (MBS) lost -35 basis points last week which caused 30 year fixed rates to increase for both government and conventional loans.  We did have a large swing in the middle of the week that helped us to reach another new low in mortgage rates.  But we very quickly gave up those gains to close down for 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.  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. 
Brought to you by:

Colorado Mortgage Guy
Office: 303-818-0699
vince@coloradomortgageguy.com

19519 E Parker Square Dr
Parker, CO 80134

www.coloradomortgageguy.com
www.plumcreekfunding.com

Hot new way to sell your home? Use social media

Can you sell your home in 140 characters or less? As more homes are put on the market, some sellers are turning to social media to create buzz about their listings.
By Bankrate.com

As social media have turned mainstream, many people have started to use Twitter and Facebook in more constructive ways, instead of just connecting with high school buddies. For instance, some use them to sell their home.

Real-estate agents and homeowners are turning to Facebook, Twitter and LinkedIn to market their properties in a sometimes frustratingly slow market. While these methods can help expose a listing to a new audience, they do require a strategy. You can’t just start tweeting and friending indiscriminately, since that’s a sure-fire way to become a social-media pariah.

In this brave new world, it’s important to first the lay of the land before choosing your path.

If you are looking for a Denver Colorado mortgage, call The Colorado Mortgage Guy at 303-818-0966.

Read entire article at: http://realestate.msn.com/listarticle.aspx?cp-documentid=24527336#atoolb

Brought to you by:

Colorado Mortgage Guy
Office: 303-818-0699
vince@coloradomortgageguy.com

19519 E Parker Square Dr
Parker, CO 80134

www.coloradomortgageguy.com
www.plumcreekfunding.com

16 ideas to help you get money for a down payment on a home
By Marilyn Lewis of MSN Real Estate

Read entire article at: http://realestate.msn.com/article.aspx?cp-documentid=24451182

Coming up with a big pile of cash to buy a home may seem daunting, especially if it’s your first. If you are looking for a mortgage in Denver Colorado. Here’s expert advice on the many ways you can get a home loan Denver Colorado, along with 4 dead-end options to avoid.

1. Pull from savings
2. Liquidate miscellaneous assets
3. Sell stock options
4. Sell taxable investments
5. Cash in a life-insurance policy
6. Use a gift
7. Try your employer
8. Enlist a partner
9. State grants and loans
10. Your lender
11. Your seller (including builders)
12. Seller financing
13. Your real-estate agent
14. Your new employer
15. Tap your IRA
16. Borrow from your 401(k)

Dead-end options to avoid

You may have heard from friends and family about other strategies. Chances are, changing rules or interest rates have made them less effective. Don’t waste much, if any, time pursuing these:

1. Peer-to-peer lending:
2. The American Dream Downpayment Act
3. Private nonprofit gift programs
4. Section 8 homeownership vouchers

Brought to you by:

Colorado Mortgage Guy
Office: 303-818-0699
vince@coloradomortgageguy.com

19519 E Parker Square Dr
Parker, CO 80134

www.coloradomortgageguy.com
www.plumcreekfunding.com