What's Ahead For Colorado Mortgage Rates This Week

By
Mortgage and Lending with First Time Home Buyer, Mortgage Rates, Pre-Approval NMLS 243370

New Home Sales Dec 2008-Dec 2009Colorado Mortgage markets had a terrible, holiday-shortened week last week as Wall Street responded to worse-than-expected inflation data and action from the Federal Reserve.  Mortgage bonds sold off with force, causing mortgage rates to rise for the second week in a row.

Last week was a bad week to float a Colorado mortgage, to say the least. Rates in Denver rose by the largest margin in any week since late-2009.

The two biggest stories from last week both came from the Federal Reserve.  The first was the release of the FOMC January meeting minutes which showed more confidence in the U.S. economy than Wall Street expected, and the second was the Fed's surprise announcement to raise the nation's Discount Rate to 0.75%. Both sparked risk-taking on Wall Street and bonds sold-off as a result.

Now, the Fed Funds Rate won't climb anytime soon and neither will Prime Rate, but the Fed has sent a clear message to the markets -- The Era of Loose Monetary Policy is over.

This week, there's a lot of economic data set for release.

  • Tuesday : Case-Shiller Home Price Index, Consumer Confidence
  • Wednesday : New Home Sales
  • Thursday : FHFA Home Price Index, Initial Jobless Claims
  • Friday : Existing Home Sales, Personal Consumption Expenditures

With markets already on edge, any better-than-expected results should be bad for mortgage rates.

After last week's performance, conforming Colorado mortgage rates for residents of Denver have now unwound most their January gains.  If you're waiting for the right time to lock, it may have been 2 weeks ago. Consider locking in this week to protect against any further deterioration in price.

Posted by

 

Thank you,


Ben Yost
Senior Loan Consultant

NMLS#   243370  LMB#  100023031

New American Funding
5299 DTC Blvd. Suite 300

Greenwood Village, CO 80111

 

Cell:     303.587.4297

Direct:  303.731.4718

Office:  877.884.3452 x4643
Fax:      303.889.5229
Email: 
ben.yost@nafinc.com
Web:  
www.newamericanagent.com/Benyost

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
mortgages
fha
denver
colorado
mortgage loans
mortgage rates
aurora
home loans
lenders
va
refinance
refinance rates
first time ho

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
196,598

Ben Yost - 303-587-4297

FHA, VA, Conventional - Mortgage Loans in De
Ask me a question
*
*
*
*
Spam prevention

Additional Information