San Diego, CA (PRWEB) August 29, 2014
Mortgage rates have been acting out of character lately, in that economic reports which have historically been big movers for mortgage-backed securities (MBS), and thus mortgage rates, have been more or less ignored. Today, economic data is still taking a backseat to European market influence, as has been the case over the past few weeks. 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.
An August 29th report from Mortgage News Daily gives more insight into the current situation. It says, “Considering that this morning's batch of economic data would certainly have been a market mover at most other moments in market history, the fact that it was completely overlooked says a lot about the current environment.”
The same article continues, “Some market-watchers out there may even be a bit confused as to why Treasuries and MBS IMPROVED after STRONGER-than-expected Chicago PMI and Consumer Sentiment at 9:45 and 9:55am respectively. Traditional approaches don't really offer a great way to account for that. In today's case, there happened to be headlines and a speech from Britain's Prime Minister concerning a "severe" terrorism alert. UK bond markets led the charge toward lower yields into 10am and everything has leveled off rather uneventfully since then. Net/net, 10yr yields are perfectly unchanged and MBS are up 3 ticks (Fannie 3.5s).”
Blue Home Loans explains that when mortgage-backed securities improve, mortgage rates head down. There are many different things that influence how high demand is for MBS at any given time, but a few of those things include geopolitical turmoil and influence from overseas markets. Both of these factors seem to have played a part in today’s market improvements in the U.S. though overlooking the latest economic data, (which was stronger-than-expected, and thus would usually cause MBS to fall and rates to rise) is a bit unusual, but something that most mortgage rate watchers have come to expect, somewhat, over the past few weeks.
The California mortgage company’s suggestion for those who are undecided about whether to lock or float is that locking when mortgage rates are near the lowest levels of the year is never a bad idea. Those who are near to closing should especially keep this in mind, and even those with more time on their hands should consider that there is no telling how rates will look when trading resumes after the long Labor Day weekend just ahead.
For those who are just starting out with their loan process, locking on application is always an option, but borrowers may wish to do this with a lender that allows for renegotiation, in case rates drop even lower before they close on their loan. Those who do not immediately lock in their rates will want to be sure that they can depend on their loan officer to keep them informed of any situations where locking would be favorable, or the best option to avoid higher rates.
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 money on their loans. As the Blue Home Loans website states,
“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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