San Diego, CA (PRWEB) October 03, 2014
Today’s NFP report came in much stronger than forecasts had predicted, a situation that would usually cause a very strong reaction in bond markets and a subsequent sharp increase in mortgage rates. However, it does not seem like this will be the case today, as bond markets seemed to shrug off the strong report only slightly worsened after the release of the data. This is not the first time bond markets have all but ignored economic data, but it is odd that what used to be one of the most reliable markers for mortgage rate forecasts for the month ahead, NFP Friday- and an eventful one at that, has not really seemed to faze market participants much at all. Blue Home Loans, Inc., a full-service California mortgage company headed by father and son, Robert and Brandon Blue, and that has been helping people to find the best home loans in California for many years takes a look at the factors playing in to today’s mortgage rate trends so that borrowers will be better informed when deciding how to proceed with their home loan plans.
An October 3rd report from Mortgage News Daily gives some interesting insight on the situation. In this report Matthew Graham explains, “Econ data is the quintessential market-mover. If every market participant could vote for a general category of "trade motivators," econ data would be at the top of the list. It's such a pervasive ideology that big financial media outlets will simply look at market movement and then relate it to data releases past and future. They do this even when the market movement has nothing to do with the data!” He goes on to say, “Look at the facts. Data has generally been strong or improving for most of the year, especially when compared to late 2013 and January 2014, yet rates are lower. It's really that simple.”
The article also says, “Sure, you'll see an obligatory movement in the logical direction suggested by data in its immediate wake, but too many times in 2014, the afternoon or ensuing days have given way to paradoxical movement. When this started happening with NFP, it was a wake-up call for the non-believers. Yes, something different really is going on here. Is it about Europe? Geopolitics? A tradeflow imbalance coming off 2013's crazy moves? The Fed? The ECB? Changes in retirement account investment guidelines? Inflation? Or the subtle subtext in economic data that tells a different story than the headlines?”
Blue Home Loans, Inc. explains that, given the current situation, it may be beneficial for those who are able to float through the weekend. The recent downward trend in mortgage rates coupled with the only slightly higher quotes after such a strong report may mean that rates are determined to go back down. This of course, is still risky, as anything could happen over the weekend and rates could start to climb again, and as such, those who are near to closing on their loans might want to consider locking in. For those who have more time on their hands and who can afford a bit of risk, floating might be the better option.
The Blue Home Loans team is dedicated to keeping their clients informed of their best home loan options and rate lock opportunities, so that they can benefit from the maximum amount of savings on their home purchase or refinance loans. By offering the best loan programs, loan rates, and closing costs available, the California mortgage company has been able to help CA residents realize their home ownership dreams for many years. The company’s 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.
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