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Mortgage Rate Indicators for Denver

By
Mortgage and Lending with Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. NMLS257576

Mortgage Rate Indicators for Denver.

The next 60 days are going to be interesting to see what rates do. Without getting too technical with the effect of supply and demand on interest rates, let it just suffice to say we are embarking on a time frame where government funding which has been supplementing the mortgage backed securities activity is potentially coming to an end. Times are going to be volitile so be sure to stay in close communication with your lender and discuss the current mortgage rate indicators!


Market Comment - Week of March 8th, 2010

Mortgage bond prices continued to rebound higher last week, which pushed mortgage interest rates lower. Stock gains kept mortgage bonds relatively in check but many of the data releases were very bond friendly. The core PCE inflation reading was unchanged compared to the slight increase expected by analysts. Q4 revised productivity rose 6.9%, much better than expected. Higher productivity means a company can produce more with less input helping to keep prices and thus inflation in check. Rates fell about 1/8 of a discount point for the week.

Expect stocks to factor into trading the early portion of the week with very little data on tap. The Treasury auctions will be the focus throughout the middle portion of the week. Strong foreign demand would likely help mortgage bonds also. The jobless figures and retail sales data will be the focus for the end of the week.


Economic Factors
Economic Indicator
Release Date Time
Consensus Estimate
Analysis
3-year Treasury Note Auction
Tuesday, March 9, 2010
None
Important. $40 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
10-year Treasury Note Auction
Wednesday, March 10, 2010
None
Important. $21 billion of notes will be auctioned. Strong demand may lead to lower mortgage rates.
Weekly Jobless Claims
Thursday, March 11, 2010
450k
Moderately important. An indication of the employment situation. A large increase may bring lower rates.
Trade Data
Thursday, March 11, 2010
$40.3 billion deficit
Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
30-year Treasury Bond Auction
Thursday, March 11, 2010
None
Important. $13 billion of bonds will be auctioned. Strong demand may lead to lower mortgage rates.
Retail Sales
Friday, March, 12, 2010
Up 0.1%
Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.
U of Michigan Consumer Sentiment
Friday, March, 12, 2010
73.6
Important. An indication of consumers' willingness to spend. Weakness may lead to lower mortgage rates.

Auctions

US Treasury bonds do not directly dictate fixed mortgage interest rate pricing however they do have an indirect impact. Both Treasuries and mortgage bonds often track in the same direction but this is not always the case. There are many times that Treasuries and mortgage bonds move inversely.

Despite the overwhelming size of the US economy, foreign investors can still have an effect on moving the financial markets. When foreign economies struggle foreign investors often purchase US based investments including mortgage bonds. This demand usually causes mortgage bond prices to rise and interest rates to fall. This flight to quality buying was one of the factors that helped mortgage interest rates to remain historically low in years past.

There is a real threat that continued global economic turmoil might keep foreign investors from purchasing mortgage bonds in the future. The Treasury auctions this week will be important in determining the current appetite of foreign investors for dollar denominated securities. If this week's auctions are poorly bid mortgage bond prices could fall pressuring mortgage interest rates higher.


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Ruth Vogt
Business Development Manager (LMB100023827)
Work: 720-489-0712
Fax: 720-489-0273
Other: http://www.dora.state.co.us/real-estate/index.htm 

 
Posted by

Ruth Vogt, Reverse Loans in Colorado

Ruth Vogt
NMLS #257576
Reverse "Retirement" Mortgage Lender

Educating 62+ homeowners on how to leverage home equity allowing them to live more comfortably in their retirement years.

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or LIVE a LEGACY?

   

 

Call or Text Me:
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Colorado Springs, CO 80109

ReverseLoansInColorado.com

Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.

 

Comments (4)

Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Ruth! Everyone, including me, always get an education about mortgage rates because of you. You make it so easy to understand. I'm glad you are getting back to it! :)

Mar 09, 2010 08:29 AM
Jill Schmidt
Aurora, CO

Hmmm, Ruth.  It almost sounds ominous!  I guess we live in interesting times!

Mar 09, 2010 10:00 AM
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 www.ReverseLoansInColorado.com

Jackie, thanks for the encouragement!

Jill, Keeps us on our toes, huh?

Mar 10, 2010 06:23 AM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Mortgage rate indicators are good to share for your buyers, you always doing good with great information for colorado people ! :P

 

Mar 15, 2010 05:08 PM