Mortgage Backed Securities Rally Despite Strong Jobs Report

California mortgage company, Blue Home Loans, Inc., comments on the current trends that impact mortgage rates and gives some advice for those looking for the best home loans.

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San Diego, CA (PRWEB) May 02, 2014

Despite a much stronger than expected data from the Jobs report released today, mortgage-backed securities actually went higher shortly after dipping immediately after the release of the report. Mortgage-backed securities (MBS) are bonds which most directly influence mortgage rates, and strong MBS means lower mortgage interest rates. The mortgage backed securities rally seems to have been caused by some serious developments between Russia and Ukraine, which would explain why MBS levels were able to improve even after such a strong NFP report. Blue Home Loans, Inc., a full service California mortgage company which has been providing the best rates and loan programs for many years, offers some insight into this current situation, as well as some advice for those who are unsure how to proceed with their home loan plans at this time.

A May 2nd report from Mortgage News Daily says of today’s developments in MBS, “This has been one of the craziest NFP mornings I can remember--probably THE single most paradoxical reaction at first glance. Granted, bond markets tanked at first following the 288k payrolls print (vs 210k forecast), but a few minutes later, began a slog that has now taken them all the way back to positive territory. The only reasonable explanation for this is the pick up in geopolitical risk this morning with the focal point being Russia issuing a request for a meeting with the UN Security Council. That meeting will take place today. In addition to that headline, many others are floating around, building an increasingly risky picture overall. These include things like helicopters being shot down, fatal gunfights, claims of Russian troops crossing the Ukrainian border and subsequent denial of those claims in a separate newswire.”

Blue Home Loans, Inc. explains that geopolitical turmoil has the affect of driving investors away from risky investments, like stocks, towards more stable ones such as U.S. treasuries and mortgage-backed securities. This benefits those who are in the market for a home loan because stronger MBS means lower mortgage interest rates. However, while this strength in MBS is great news for mortgage borrowers, the mortgage company advises that the improvement could be short lived. Because it appears that the situation in Ukraine was the factor most impacting this shift in MBS levels, a resolution, or at least a de-escalation of the situation could cause the affects of the strong jobs report to come back full force.

Because of this, the Blue Home Loans team suggests that borrowers should see this as a lucky break, at least for now, and seriously consider locking in if their lender reprices favorably. Those who are near to closing on their loans should especially follow this advice; however, even those who have not started their loan process yet can benefit from this advice by locking in on application, preferably with a lender that allows for renegotiation. This will allow them to keep today’s low rates in reserve while keeping their options open in case something big happens and rates dip lower before their loan closes.

Blue Home Loans can help those 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 hundreds of thousands of dollars on their loans. The company recently experienced an expansion thanks to an increase in clients drawn by rave reviews of the company. As a result, Blue Home Loans, Inc. now offers many exciting new resources and loan programs that are not available with many other companies. The Blue Home Loans website now 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.

CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #93836


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