mortgage update denver colorado

New Home Sales Continue To Rise:

Investors cheered yet another U.S. report showing signs of improvement in the housing market.
The Commerce Department report showed US new home sales rose for the third straight month in row, increased by 1.6% to a seasonally adjusted annual rate of 315,000 from October.

Even as the pace of gain was smaller than 2.6% forecast by economists, investors took comfort in that housing data released in recent days have started to show stabilization, and given that the housing market is one of a major contributors to the economy, it could provide some support for the economic growth next year.

New homes account for just a fraction of the housing market, but they have a big impact on the economy. Each new home built creates roughly three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

What Happened to Rates Last Week:

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Mortgage backed securities (MBS) lost -82 basis points from last Friday to the prior Friday which moved mortgage rates higher.

We had a mixed bag of U.S. economic data.  The 3rd quarter GDP number was revised downward from 2.0% to 1.8% but Durable Goods Orders, Initial Jobless Claims and New Home Sales were much better than expected.
We saw strong demand for the U.S. 2 and 5 year Treasury auctions but demand for the 7 year Treasury auction fell sharply which was a negative for mortgage rates.

Traders sold off MBS on the positive economic news and the relatively weak 7 year Treasury auction which 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.  I will be watching these reports closely for you and let you know if there are any big surprises:

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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
19519 E Parker Square Dr
Parker, CO 80134

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