On behalf of RE/MAX of Boulder, I would like to thank you for using our office and helping to make us THE leader in the Boulder Valley Real Estate Community. We average over 17 years of experience per agent and are recognized nationally for our excellence in real estate sales.
RE/MAX of Boulder prides itself on our proven ability to assist families relocating from other parts of the country, and the world. We offer Buyer Agency and have the largest inventory of property listings in Boulder County.
D.B. is a past President of the Boulder Area Board of REALTORS®, in addition to being a past REALTOR® of the Year for that organization as well.
D.B. is a third generation Coloradan. He graduated from the University of Colorado in 1975, and entered the real estate industry a year later.
In 1991, D.B. was named Manager of the Year for RE/MAX of Colorado. He manages an office of 87 full time REALTORS®. RE/MAX of Boulder has consistently been recognized as the highest producing RE/MAX office in the Rocky Mountain region, based upon per agent volume.
As Manager, he will personally introduce you to one of our REALTORS® who can guide you through the real estate process. Our real estate agents pride themselves on consulting, educating and preparing our clients in the home purchase or selling process.
D.B. Wilson RE/MAX of Boulder, Inc. 2425 Canyon Blvd., #110 Boulder, CO 80302 Phone: 303-441-5655 Fax: 303-731-4881
There are currently 394 blog entries published by DB Wilson.
Not the best start to a week with few important reports. Mortgage interest rates are hanging on but the 10 year long bond is taking a beating today, climbing from Monday's low of 1.94% to this afternoon's 11 month high of 2.046%. So what's happening? Two things primarily:
The long bond sale today did not go well and that is pushing rates higher this afternoon. The lack of demand seems to be related to the Lunar New Year which closed the markets in Hong Kong, Taiwan and mainland China.
Secondly is the increasing sentiment that Washington isn't going to come to a good solution to the debt ceiling issues that we pushed out to March a month ago. Last night's State of the Union address and a variety of statements by Senators and House members
Mortgage interest rates improved slightly on the week despite limited economic data. Of note, December Factory Orders, the January ISM Services Sector Index, weekly jobless claims, and December Wholesale Inventories were slightly weaker than expected. December Consumer Credit increased more than expected but revolving credit actually fell $3.6 billion. The U.S. trade deficit in December was smaller than expected at -$38.5 billion largely driven by record exports of petroleum. Also, Q4 productivity was revised lower than expected and as a result unit labor costs increased more than expected. On March 1st, automatic spending cuts of $85 billion are scheduled to take place so markets will monitor negotiations between the President and Congress
Overall a good week for bonds and mortgage rates. After climbing over a quarter percent since the first of the year, the 10 year long bond retreated from last Friday's close of 2.03% to 1.95%. That's off of yesterday's weekly low of 1.93% but still a good way to close the week. For mortgages, that stabilizes rates somewhat at 3.5% for the 30 year.
As we talked about Wednesday, we needed yesterday's Jobless Claims number to come in at consensus or higher and no real surprises in the International Trade Balance numbers today. Jobless Claims came in just above (higher is better for bonds and worse for the economy) the top end of consensus at 366,000 but we also saw last weeks' number revised upward by 2000. No big misses but enough to keep the
Rates continue to move in a very tight range but most all the pressure is still upward. The 10 year long bond peaked Friday afternoon at 2.02% and has since slipped back down to 1.96%. Small improvement but positive and that drops the yield below a major support level. So what's triggering the slip? Mostly a weaker than expected Factory Orders report. November's numbers were revised downward from 0.00% to 0.3% and December's numbers came in at an anemic 1.8%, well off the consensus of 2.4%. The manufacturing report isn't normally one of the high profile reports but it is supporting the underlying contention that the economy really isn't particularly healthy and while trying desperately to improve, it is very fragile. Despite government spokespeople
The market is pretty pessimistic about interest rates staying low for any extended period and is interpreting everything within that context. Wednesday's GDP report was shockingly low and we saw just a slight reduction to the 10 year bond. The consensus was that the country's Gross Domestic Product would grow 1% and it shrank 0.1%. That's really significant. Then yesterday the jobless claims came out and it showed a week of more than predicted jobless claims. The market was expecting 350,000 claims after last week's low of 330,000. Instead we saw 368,000 new claims which is well above our 4 week moving average of 352,000. Both reports show a weak economy but the 10 year stayed high at just below 2%.
An exciting Friday morning in the markets and as usual, exciting isn't good for interest rates. 10 year treasury's moved up slightly yesterday after the initial jobless claims numbers came in at the very low end of a very broad consensus range. Claims for last week were at 330,000 well below the consensus of 360,000. For the second week in a row we've seen much lower than projected numbers and that doesn't bode well for the continuation of the low interest rates.
Today's new home sales report wasn't so much a surprise for the current numbers which were actually lower than predicted but for the larger upward re-visions in the past two month's numbers. Both October and November's numbers were already good but the big upward revision is taking them
Mortgage rates are staying in a tight range which is excellent for homebuyers, Realtors and mortgage originators. While dropping rates are exciting, stability can lead to more sane transactions. The 10 year Treasury is doing some rapid transitions, bouncing from the upper support level, back down to the lower support level then back up again. All the movements right now are quick and sharp but as long as the support levels hold, there shouldn't be any change in mortgage rates. With the markets closed Monday for MLK and no major reports until Thursday, expect no real change unless some politician opens his/her mouth.
Since Wednesday we've seen a few new reports and the results are decidedly mixed. Housing Starts came out yesterday showing a very
Mortgage rates are remaining constant although there has been a drop in the 10 year treasury. The 10 year yield is down (improving interest rates) from 1.86% at the close Friday to 1.81 today. The best explanations for the moment are that investors are re-balancing their portfolios, re-purchasing bonds and last week was too much of an overreaction. The economic news out this week is right on target and Chairman Bernanke's talk on Monday was mostly reassuring. With few other big reports this week, rates should stay in a small range.
The reports out showed: Producer Price Index came in at -0.2% and the consensus was -0.1%. So inflation is less than thought - good for rates. Consumer Price Index came in at +0.1%, right on the consensus number. It
Mortgage rates are solidly in the 3.375% range and aren't doing any mirror movements with the 10 year T-bill right now. The 10 year which bounced above 1.9% early in the week, then dipped back to 1.84%, shot up to 1.92% early today only to retreat to 1.87% and still falling at mid-afternoon. The drop is coming mostly from a sell off in corporate bonds as investors are switching to (the currently) higher yielding government bonds. With the first full slate of government reports for the year coming out next week and Fed Chair Bernanke speaking on Monday, expect some volatility but with rates staying in a quarter percent range of 1.7% - 1.95%. The 1.95% number is a strong resistance point and it doesn't appear there's enough pressure to push through
With very little news so far this week and very little coming out the remainder of the week, bonds are just re-gaining a little of what they lost last week. Last week's sell off was an over reaction but there is no question we are off the bottom of the interest rate floor and most all pressure is up. The 10 year bond has dropped back towards its 1.84% support level and is sitting just below 1.85% late Wednesday. The next lower support level is at 1.80% and for us to see those 3.25% interest rates again, the bond will need to drop below the 1.80% support level and probably down towards 1.75%. Thursday and Friday have minimum reports, just jobless claims and International Trade. Next week contains a pretty full slate of reports. Expect rates stay put