June 2013

Found 13 blog entries for June 2013.

Finally we're seeing a little stability in the market after two weeks of chaos.  The 10 year treasury seems to be stabilizing in the 2.5% range which should stabilize mortgage rates at 4.25%.  The 30 year mortgage rates are still slightly above that as a result a jump earlier today.  Since then we've seen some recovery and some stabilization.  

As to what's happening, the stability is coming from two components:

First, yesterday's economic news was in line with expectations. First Time Jobless Claims came in at 346K with the consensus being 345K.  That's close enough.  Personal Income and Outlays was a mixed bag.  Personal Income was up a strong 0.5%, well above the expected 0.2%  but on the spending part, consumers are spending less than expected

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I left town for a week and the markets go to heck in a handbag with the 10 year treasury moving a quarter percent and mortgage rates climbing a full half percent.  With the perfect storm last week of Chairman Bernanke's clarification on when the Fed would start down sizing their mortgage purchases and China's economic announcements, we saw a major rush to the sidelines with the Dow losing 500 points and bonds dropping a half point.  That's a lot of money on the sidelines which means the investment world isn't sure where to put their funds. 

So where are we now?  On Monday, the 10 year peaked at 2.62% (almost a full percent higher than the first of May), then danced around in the same area and is currently trading at 2.55%.  Mortgages are in the 4.5%

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Rates Increase on the Fed’s FOMC Announcement

Mortgage interest rates increased this past week on the Fed’s FOMC announcement.  The Fed indicated that they believe that unemployment will continue to decline slowly and that the economic outlook is and has been improving.  As a result, the Fed believes now that the end of the current quantitative easing will likely be mid-2014.  They will likely begin tapering the quantitative easing soon as long as the economy continues to improve.  If the economy stalls, though, the Fed will be ready to increase the quantitative easing.  Economic data this past week was mostly stronger than expected.  Data stronger than expected included the June New York Empire State Manufacturing Index, the June NAHB Housing Market

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Rates Improve Slightly on Weaker Economic Data

 Mortgage interest rates improved slightly on the week as economic data was mostly weaker than expected.  Economic data weaker than expected included May Retail Sales excluding automobile sales, May Industrial Production, May Capacity Utilization, and the University of Michigan Consumer Sentiment Index.  In Europe, the Euro-area economy contracted 0.2% in the first quarter, extending its recession into a sixth quarter.  In China, industrial production was below forecasts on a year over year basis.  The World Bank cut its forecast for global economic growth from 2.4% to 2.2%.  Inflation data in the U.S. was mostly tame.  May Export Prices Import Prices were weaker than expected.  The May Producer Price

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Volatility in the market continues as many investors are being forced to re-price their mortgages multiple times per day.  In the past week, we've seen rates move from a low of 2.04% on Friday up to a high of 2.25% yesterday.  Today we saw rates start at 2.18%, rise to 2.22%, drop to the low for the week of 2.17% and then start back up.  All that based upon no economic reports.

The yields today started climbing today after the Treasury sold $21 billion of 10 year notes at a yield of 2.09%, amid weak demand.  That represents the highest yield we've seen in months and mortgage rates followed suit. This is the weakest demand we've seen since last August, resulting in the highest yields, we've seen since October.  The most plausible explanation is that

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Coloradans’ growing confidence may be pushing the local economy in a positive direction.

The Metro Denver Economic Development Corp. reports that consumer confidence in metro Denver has hit a five-year high even as the region steadily adds new jobs.

The organization’s Monthly Economic Summary for June 2013 shows that consumer confidence rose to 89.1 – the highest point since March 2008 – in the Mountain Region, which includes Colorado. The index rose by 23.6 percent over the previous month and increased by 51.8 percent compared with May 2012.

The Monthly Economic Summary provides a snapshot of metro area economic activity, as well as its relationship to national and regional economic trends.

“Consumers are more optimistic about future job

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If the time has come to turn the bathroom into something more than a bathroom (i.e.: a place for relaxation and pampering), then consider the luxury hotel experience with neutral colors, towel warmers, heated floors and an oversized shower with its own seating, according to Yahoo! Homes.

Here are some suggestions from Yahoo! Homes about how to turn a bathroom into something more akin to a spa:

Neutral-colored floors that keep toes warm

With only its subtle colors, natural stone and wood, and luxurious cuddly robes, spas invite customers to relax.

Neutral-colored floors can make a personal bathroom appear bigger, and tile that resembles wood provides the ability to do this without the fear of needing to wipe up every drop of water that gets on

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Boulder ranked first among 91 medium cities nationwide in New Geography’s 2013 edition of the Best Cities for Job Growth.

The ranking identifies the cities demonstrating the most momentum in the “job creation sweepstakes,” according to New Geography. The biggest winners are the metro areas adding higher-wage jobs in America’s two biggest-growing sectors – technology and energy.

New Geography bases its rankings on short-, medium- and long-term employment performance, and takes into account both growth and momentum — whether growth is slowing or accelerating. As a result, areas that have made the strongest recoveries from deep setbacks often do well.

The blending of energy and other sectors also helped Denver grow a strong economy and rank ninth

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Colorado’s home-price appreciation rate, which increased 11.96 percent from the first quarter of 2012 to the first quarter of 2013, allowed it to move up in the nationwide rankings from the fourth quarter of 2012.

The Federal Housing Finance Agency ranked the state No. 7 – up one position from the previous quarter – in its 2013 first quarter house-price appreciation index. None of Colorado’s seven metros ranked in the top or bottom 20 metro areas, and Denver-Aurora-Broomfield was the highest-ranking Colorado metro at No. 36 with a one-year appreciation rate of 5.91 percent. Boulder came in at No. 76 out of 306 metros and fifth among Colorado metros with a one-year appreciation rate of 2.96 percent.

With an appreciation rate of -1.68 percent, Pueblo

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While buyers are braving the sluggish economy to find their dream home in the Boulder area, it appears many home owners have yet to find the courage to put their homes on the market.

Home sales and prices are rising steadily, but low inventories are still holding the Boulder-area market back, according to Ken Hotard, senior vice president of public affairs for the Boulder Area Realtor® Association.

“The market continues to be characterized by lower inventories than needed to meet current demand,” he says. “While mortgage interest rates are going up slightly, they’re still at historic lows, luring buyers into the marketplace. We also continue to see significant cash sales hovering between 25 and 30 percent.”

The 1,346 single-family homes on the

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