San Diego, CA (PRWEB) June 17, 2014
Yesterday rates improved slightly, but this was erased today when rates went right back up to around the same levels of middle of last week after a stronger than expected inflation data report. 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 17th report from Mortgage News Daily says, “Mortgage rates erased yesterday's improvement, ending up back at levels consistent with the middle of last week. Stronger-than-expected inflation data fueled speculation that the Fed will remain on an aggressive path with respect to an eventual rate hike. Bond markets continued to suffer while stocks bounced back from pre-market weakness. Most lenders ended up raising rates at least once during the day. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains 4.25%. Many borrowers will see today's increase only in the form of higher closing costs (equivalent to 0.04% in terms of rate).”
The same article continues, “For most of 2014, and especially since May, mortgage rates have been in a very narrow range marked by top-tier rates of 4.125%-4.25%. As we frequently discuss, most days don't bring enough market movement for rates themselves to move a full eighth of a point. Within those eighth-point chunks however, closing costs can change every day, and sometimes several times a day.”
Blue Home Loans explains that to get back to the lower end of this narrow range (4.125%) there would need to be a fairly big positive move in bond markets, and at this point it is not clear where such motivation would come from. There could be some good news after tomorrow’s FOMC meeting, but it would not be wise to count on that. Instead, borrowers should carefully consider their risk tolerance, and lock in if today’s rates seem reasonable to them and they would rather not risk having to settle for a higher rate. This is especially prudent advice for those who are near to closing on their loans, but 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.
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