San Diego, CA (PRWEB) June 05, 2014
Today is the day of the highly anticipated European Central Bank (ECB) meeting, the result of which could make today potentially a very big day for mortgage rates and finance markets in general. Blue Home Loans, Inc., a California-based full service mortgage company that has been helping CA residents find the best rates and loans available for many years, has been keeping track of these recent mortgage rates trends and now comments on the current situation and offers some advice for those who are not sure how to proceed with their home loan plans.
A May 5th report from Mortgage News Daily gives a good synopsis of the current swing of things. It says, “…there's no question what's leading "La Resistance" for US bond markets in 2014. Just like in the movies, our contact has a European accent. The enemy they're fighting is deflation, and their leader promised impending action the last time we heard from him (Draghi press conference last month). Today is the day where we find out what that action is. In fact, depending on when you wake up in the morning, it may have already happened (745am Eastern). Markets expect the ECB to cut their deposit rate into negative territory. This is symbolically interesting only.”
The same article continues, explaining, “More important is the "other stuff." It's less certain what that will be, if anything, but the more it includes or leaves the door open for QE and the more aggressive the promise of future action, the more favorable the bond market response might be. (Or play the other side of the table and say that aggressive Eurozone measures increase the chance they can create inflation, thus putting upward pressure on yields. Longshot, but you never know). Either way, markets have no idea what the ECB will do apart from a very likely rate cut, and conflicting ideas about how to react to it.”
Blue Home Loans explains that while it is a possibility rates will go down today, there is also the chance that they will not, and could even bounce a bit higher. This is because it is not clear how much of the recent decrease in mortgage rates was the result of “anticipation” of a favorable result from this meeting. As is mentioned in the article quoted above, there is no guarantee that the meeting will result in the type of changes many people are hoping for. If this is the case, rates could simply stay as they are (they have been rising over the past few days, getting more in line with the sideways trends of 2014) or they could even jump higher. Aside from this, tomorrow is the date the NFP report will be released which, were it not for the ECB meeting taking center stage, would be the most important factor influencing mortgage rates this month. If the meeting ends in a mediocre announcement, followed by a stronger than expected jobs report tomorrow, rates could definitely head up. On the other hand, good news from today’s meeting coupled with a weaker than expected report could result in much lower mortgage rates.
Because of this, the California mortgage company notes that the decision to float or lock on a mortgage loan is a big gamble at the moment. Those who are averse to any risk should definitely consider locking in as soon as they can, as rates are still near the lowest levels of 2014. This would especially apply to anyone who is near to closing on their loan, and for which even a temporary spike in rates would mean losing out on all the gains seen so far this year. Even those who have not started their loan process yet can benefit from this advice by locking in on application with a lender that allows for renegotiation. This will allow them to keep current low rates in reserve while keeping their options open in case rates dip lower before their loan closes.
Blue Home Loans can help California borrowers who are looking for the best rates, lenders and loan programs to find exactly what they need so that they can take advantage of today’s lowest mortgage rates and save thousands of dollars on their loans. As the Blue Home Loans website says, "We make finding a loan simple because we have virtually every loan program available, regardless of the type of mortgage you are looking for. Whether you are dealing with bad credit, foreclosure, bankruptcy, or low credit scores, we can help you. It only takes us five minutes to find the right program that fits your needs."
For more information on how Blue Home Loans can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit BlueHomeLoans.com or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.
California Bureau of Real Estate -- BRE #01938557 NMLS #1162386