Blogging About Loans: Mortgage Rate Indicators for Denver

An office of elite mortgage lending professionals with a common interest and goal focused on providing customer service that exceeds expectation. Thereby building our business from repeat and referral opportunities. Ruth Vogt. LMB 100023827. NMLS 257576. Regulated by the Division of Real Estate. Fairway Independent Mortgage is an Equal Housing Opportunity.

Mortgage Rate Indicators for Denver

Mortgage Rate Indicators for Denver

Although there is no true way to forecast with certainty what rates are going to do, mortgage rate indicators are something to keep an eye on if you are trying to decide when to lock your interest rate. Below are the mortgage rate indicators for the upcoming week.

Market Comment - Week of December 14th, 2009

Mortgage bond prices were near unchanged last week holding mortgage rates steady. Trade was extremely volatile with swings of 1/2% in discount points common. The Treasury auctions were not as well received by foreign accounts as traders were hoping. The US relies on foreign central banks such as China to fund our deficit spending. If China were to decrease or cease purchasing US bonds and notes, rates would rise.

Interest rates finished the week near unchanged.

The inflation data will be the most important releases this week. Inflation erodes the value of fixed income securities causing prices to fall and rates to rise. The Fed meeting will also take center stage. While no rates changes are expected the wording of the release will be very important.

Economic Factors
Economic Indicator
Release Date Time
Consensus Estimate
Producer Price Index
Tuesday, Dec. 15, 2009
Up 0.9%, Core up 0.2%
Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Industrial Production
Tuesday, Dec. 15, 2009
Up 0.6%
Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization
Tuesday, Dec. 15, 2009
Important. A figure above 85% is viewed as inflationary. A decrease may lead to lower mortgage interest rates.
Housing Starts
Wednesday, Dec. 16, 2009
Up 8.6%
Important. A measure of housing sector strength. Weakness may lead to lower rates.
Consumer Price Index
Wednesday, Dec. 16, 2009
Up 0.7%, Core up 0.1%
Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.
Fed Meeting Adjourns
Wednesday, Dec. 16, 2009
No rate change
Important. Few expect the Fed to raise rates, but some volatility may surround the adjournment of this meeting.
Leading Economic Indicators
Thursday, Dec. 17, 2009
Up 0.7%
Important. An indication of future economic activity. A smaller increase may lead to lower rates.
Philadelphia Fed Survey
Thursday, Dec. 17, 2009
Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.

Trading Conditions

As we all know, mortgage interest rates change on a daily and intra-day basis. With so much volatility, it is often difficult to make the right decision regarding floating or locking. What is important to remember is the fact that there is a difference between gambling and taking a calculated risk when making mortgage interest rate decisions. Floating into an economic release such as the employment report is usually a gamble, as was evident with the rate spike the beginning of this month. In addition, floating over a span of more than a few days is also a gamble. Unforeseen events can cause instability in the financial markets that results in mortgage interest rate volatility. On the contrary, floating on a day of positive market movement with no economic data the following day, while such action is still vulnerable to market movements, can be considered a calculated risk. It is possible for interest rates to push lower due to the uncertain future of the economy. Unfortunately the recent focus has been towards rate increases, which generally don't bode well for lower mortgage interest rates. Taking advantage of rates at the current levels guarantees a historically favorable interest rate and protects against uncertainty surrounding future interest rate developments.

WR Starkey Mortgage - A different kind of company...where people come first!

Ruth Vogt
Business Development Manager (LMB100023827)
6025 South Quebec, Suite 110
Englewood, CO 80111 
Work: 720-489-0712
Fax: 720-489-0273

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

Ruth Vogt Colorado Mortgage Lender Ruth Vogt, Sales Manager

 #LMB100023827, NMLSR# 257576

 Equal Housing Opportunity. 

 Regulated by the Division of Real Estate.  303-881-7849.


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Comment balloon 2 commentsRuth Vogt • December 21 2009 10:22PM


Ruth, I won't pretend to understand the market and what controls the rates -- this is why I rely on my BFF Mortgage Broker for advise, and why all buyers should enlist the help of a mortgage broker who "gets it".  Thanks for the post Ruth!

Posted by Mary Douglas, REALTOR, Red Feather Lakes, Colorado (United Country Ponderosa Realty, Red Feather Lakes, Colorado) over 9 years ago

Mary, No doubt it's very important to have a BFF Mortgage person to keep you current. Too dangerous not to!

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) over 9 years ago