Pending Home Sales Surge

On June 10, 2010, in mortgage rates colorado, by admin

Pending Home Sales Surge

pending home sales
A pending home sale is simply a signed contract on a home that has not yet closed. The National Association of Realtors reported that we continued to see gains in home sales for the third consecutive month.  The index rose 6.0% last month and 22.4% when compared to April 2009.  The April increase follows a 7.1% in March and a 8.3% increase in February.

While certainly some of the gain can be attributed to the rush to get a contract signed prior to the end of the tax credit, there is definitely underlying demand as consistently low rates and increased consumer confidence in the housing market has helped to drive up demand for homes.

Unemployment Rate Drops:

The Labor Department reported that our nation’s unemployment rate dropped from 9.9% to 9.7%.

Non-farm payrolls increases 431,000 in May.  However, 390,000 new hires were due to the wave of census hiring.  That means that only 41,000 private sector jobs were created.  While this is an improvement, it was certainly much less than market expectations and a further sign that our recovery isn’t as hot as once believed.

What Happened to Rates Last Week:

mortgage rates denver colorado

Mortgage backed securities (MBS) gained +69 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans and pushed mortgage rates to match the year’s best levels.  The better mortgage rates were due to very mild economic data and continued concern over debt and banking issues in the European Union.

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 rate denver colorado

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

19519 E Parker Square Dr
Parker, CO 80134

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