San Jose, CA (PRWEB) January 28, 2013
According to Mortgage Bankers Association, California mortgage rates increased again last week. The rates have now increased for five out of last six weeks. This is the third consecutive week that 30 year fixed rates have gone up. Overall the rates have gone up by .25% after hitting the lowest levels in November, 2012.
Shashank Shekhar of Arcus Lending said – “The rates are now at highest levels since August 2012. The outlook for mortgage rates continue to be stable to bearish. Meaning, best case scenario they would stay the same. But on the flip side it could worsen another .125% to .25% in next few weeks. Only thing supporting the mortgage market is the fact that the Fed is still buying mortgage backed securities (MBSs) and treasuries.”
When asked about the reason for sudden jump in rates he mentioned two main reasons:
Relief in debt crisis situation in European Union and better than expected economy news in the US.
He recommends that the borrowers should work with a lender who tracks mortgage backed securities daily. This way they can suggest to the borrowers when is a good time to lock the rate.
Better economy news is usually not good for mortgage rates. The money flows from bonds to stocks, thus worsening mortgage rates.
In this volatile rate market, Arcus Lending has made rate shopping extremely easy. At one place, a borrower can compare rates from leading banks like Wells Fargo, Chase, Bank of America and Citi Mortgage. When compared to these big banks, Arcus Lending is consistently priced better. They also offer no closing cost option for refinance transactions. See how Arcus Lending stacks up against the competition –
Shashank Shekhar has also written a blog post to help borrowers shop correctly to get the best mortgage rates. Check out his blog post on shopping mortgage rates.
About Arcus Lending:
Arcus Lending, a California Mortgage Broker and a Direct Lender offers residential mortgage for home purchase and refinancing for California home owners. More information can be found via email - Info(at)ArcusLending(dot)com, by phone (408) 615-0655 or by visiting their website at http://www.ArcusLending.com