San Diego, CA (PRWEB) February 03, 2014
With January bringing an unexpected decrease in interest rates which has continued despite many predictions that they would start to go up again, many California borrowers are likely wondering “Will mortgage rates stay low?” Blue Loan Services, which has been helping borrowers to find the best loan products, loan rates, lenders and realtors for many years, and is continuously updating their clients on any changes to the real estate and finance markets that could affect their loan options, comments on this situation and gives some advice for those looking for the best mortgage deals.
A recent article posted on Mortgage News Daily, published on February 3rd, talks about current bond markets, and what results upcoming economic data might bring. The article says, “It's an interesting time for bond markets where the recent momentum is in between definitions. The more pessimistic definition would consider January's impressive rally to be a healthy correction against a longer-term move higher in rates (this is reflected in the chart below). The more optimistic outlook is that January's rally was more than just a correction in a larger trend, and may even be indicative of a supportive ceiling bounce. Only time will tell which of these outlooks is more accurate, but this Friday's Employment data may well have be the biggest deciding factor in that regard in the near term. There are a few reasons for this based both on trading levels and on the data series itself.”
Blue Loan Services explains that bond markets are inversely related to mortgage interest rates. Thus if bonds are high, mortgage rates will usually be low, and vice versa. As stated in the quote above, bonds have been doing exceptionally well, and if they continue on this course, mortgage rates might stay low or even move lower. But, this will depend on what the economic data has to report. The mortgage company explains that the reason this Friday’s Jobs report will be especially important is because some of the strength in bond markets is a direct result of weak data from last month. Another weak report could further confirm that the low rates are a more permanent fixture than believed, while a strong one would likely signal a turn around to the recent decreasing trend.
Given the chance that rates could start to go up quite quickly if this happens, and the fact that rates have improved to a very good level for most borrowers, Blue Loan Services advice for most mortgage seekers is that it is safer to lock in the current mortgage interest rates and have the chance to renegotiate if rates fall considerably before the loan is closed.
Blue Loan Services can help those who wish to lock in today’s low mortgage rates to find the best possible loans for their situation and work quickly to get approved so that they can avoid higher rates down the line. Their fast online loan application and documentation portal makes it simple for clients to submit their application and keep track of their loan’s progress. With a reputation for fast, reliable and courteous service, the company’s team of experienced loan officers can be especially useful during this time of rapidly changing mortgage rates.
For more information on how Blue Loan Services can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit BlueLoanServices.com or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.
CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #938365