Possibly a Slow Day Ahead for Mortgage Rates

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California mortgage company, Blue Home Loans, Inc., comments on the current mortgage rates trends and offers advice for those who are seeking the best home loans.

Bond markets are just slightly weaker this morning, but there does not seem to be much motivation for significant changes today. This means that there may be a slow afternoon ahead for mortgage rates, as bonds, more specifically mortgage-backed securities (MBS), are responsible for the ups and downs seen in mortgage interest rates. 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 June 13th report from Mortgage News Daily says, “Bond markets gave back a small chunk of yesterday's rally heading into the overnight session on comments from the Bank of England regarding an accelerated rate-hike outlook. At least that's where most of the blame for this morning's weakness seems to have fallen. In actuality, one could simply point to the fact that rates hit technical resistance well before the BOE news (10yr yields bouncing before breaking 2.57) and that anything between there and 2.66 would be fair game unless we found reason to extend the rally. In other words, yesterday's positive session meant we had a shot at a stronger move lower in rate or that we'd simply be leveling-off between the two closest technical levels, 2.57 and 2.66. In terms of Fannie 3.5s, this is approximately 101-20 to 102-10.”

Blue Home Loans explains that rates could go slightly lower or higher today, but are not likely to stray much from yesterday’s levels. As explained yesterday, some lenders may be pricing in gains seen from yesterday’s better than expected 30-yr Treasury auction this morning, so those who floated overnight may want to check in with their loan officers. If today does go without much change, next week might provide more motivation for markets to move more definitively one way or another.

For the time being, however, rates are still near the lower end of the spectrum when it comes to 2014 mortgage rates. This means that those who are near to closing on their home loans may wish to avoid losing any of these gains to a short burst of higher rates and instead just lock in now. 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

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Brandon Blue
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