Connecting Colorado Neighbors-The Foerster Team

Mortgage Rate Indicators for Denver

Finding a lender that you can trust and who can get the job done can be a challenge.  Combine that with someone who provides good insight and information and you've got it all.  Thanks to Ruth with WR Starkey for keeping all of us enlightened.

Mortgage Rate Indicators for Denver

If you are thinking about buying a home, but holding off to see if the government is going to offer any new tax credits to entice you to buy, you might want to think again!

Interest rates are so much lower than they were when the tax credits were being offered. And the mortgage rate indicators are suggesting now is the time to act to take advantage of these low rates... while they last!

Low sales prices + Low interest rates = great time to buy!

But that formula won't last forever. It is very important to keep your eye on the Mortgage Rate Indicators to make sure you don't miss your opportunity to get your rate locked in while rates are low. One percent interest rate increase is approximately $60 per month extra per month per $100,000. 

Don't delay, call today!


Market Comment - Week of September 13th, 2010

Mortgage bond prices fell last week pushing interest rates considerably higher. The primary cause for the increases was stronger than expected data. Consumer confidence and weekly jobless claims beat estimates solidly and shocked the bond market lower. Overall the Treasury auctions and stronger stocks also pressured mortgage bond prices.

Rates rose by about 1/2 of a discount point for the week.

The retail sales data Tuesday will set the tone for trading this week. If any of the data comes in positive mortgage interest rates may continue the recent climb into higher territory. Expect more volatility, as stocks and bonds are likely to continue their back and forth trading pattern.


Economic Factors

Economic Indicator

Release Date Time

Consensus Estimate

Analysis

Retail Sales

Tuesday, Sept. 14, 2010

Up 0.2%

Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.

Business Inventories

Tuesday, Sept. 14, 2010

Up 0.4%

Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.

Industrial Production

Wednesday, Sept. 15, 2010

Up 0.4%

Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.

Capacity Utilization

Wednesday, Sept. 15, 2010

75.0

Important. A figure above 85% is viewed as inflationary. Weakness may lead to lower rates.

Producer Price Index

Thursday, Sept. 16, 2010

Up 0.2%, Core up 0.2%

Important. An indication of inflationary pressures at the producer level. Decreases may lead to lower rates.

Weekly Jobless Claims

Thursday, Sept. 16, 2010

465k

Important. An indication of employment. An increase in jobless claims may bring lower rates.

Philadelphia Fed Survey

Thursday, Sept. 16, 2010

-4.2

Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.

Consumer Price Index

Friday, Sept. 17, 2010

Up 0.1%, Core up 0.1%

Important. A measure of inflation at the consumer level. Lower figures may lead to lower rates.

 

Business Inventories

The report on business inventories basically gives a broader look at the durable goods, factory orders, and retail sales reports. Not only is this report an important part of the investment component of the GDP, but it also provides additional evidence about the economy in the upcoming months. Changes in business inventories slow as the economy approaches a peak, and rise as the economy approaches the trough of a recession. Therefore the change in business inventories is a leading indicator of GDP. The data for this report, which are published by the Department of Commerce's Census Bureau, comes from a monthly survey of inventories, orders, and manufacturers' shipments, in addition to the merchant wholesalers and retail trade surveys.

Not a great amount of attention is typically paid to this report due to the fact that much of the data is already available and surprises are rare. However, in this environment every piece of data has the potential to cause some volatility.


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Views and opinions expressed on this site are not necessarily those of WR Starkey Mortgage.

  Ruth Vogt Colorado Mortgage Lender

 Ruth Vogt, Branch Manager

   Colorado LMB #LMB100023827

   www.MyLenderOfChoice.com

   rvogt@wrstarkey.com

 

  

rich and donna

 

Donna Foerster

The Foerster Team

Cherry Creek Properties, LLC

REAL Market Knowledge. REAL Service. REAL Estate.

Serving Metro Denver

www.TheFoersterTeam.com

720-530-5554 (cell)

 

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Comment balloon 4 commentsDonna Foerster • September 13 2010 12:11PM
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