San Diego, CA (PRWEB) August 06, 2014
Bond markets saw some improvement overnight due to pressure from European markets, but once the US Trading session started, some of this improvement was lost. As a result, average mortgage interest rates are still hovering near the lows of the current range, with only minuscule improvement over yesterday or none at all depending on the lender. 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 6th report from Mortgage News Daily gives a fuller picture of today’s events. It says, “Mortgage rates edged microscopically lower today, though some lenders were unchanged from Tuesday's latest levels this morning. Bond markets (which set the tone for mortgage pricing) improved forcefully overnight, led by European bond markets. That suggests lower rates to start the day, but markets began moving in the other direction just before lenders put out their first rate sheets of the day. The net effect is the merely tepid improvement. Lenders' caution was justified as bond markets never threatened to move back toward overnight levels. The most prevalently-quoted conforming 30yr fixed rates remain 4.125% and 4.25% depending on individual details and the lender.”
This same article goes on to explain, “The rate outlook can be either encouraging or disheartening depending on how you choose to view it. On the one hand, these rates are still near the lowest levels of 2014. Additionally, rates have shown a remarkable ability to stay near those lows for a longer stretch of time than normal. Finally, to whatever extent European turmoil (weak economic data and geopolitical risks) continues pushing European rates lower, the spillover effect is increasingly likely to help US rates move lower. The disheartening view is much simpler. In short, rates can't seem to break through the floor! Whether we're talking about actual mortgage rates or the broad-scale posterchild for bond markets--the 10yr Treasury yield--both continue bumping into the same floors that blocked their progress in July. Additionally, neither have made any serious attempt to get back below the 2014 lows seen in late May.”
Blue Loan Services explains that given the current situation the decision to lock or float can be a bit of a foggy choice. On one hand, rates are still quite low, and there is no guarantee that this will continue to be the case. On the other hand, there is some potential that rates could move lower, given that Europe’s rates are definitely on a downward trend and US mortgage rates tend to follow these moves to some extent. However, the fact that rates have failed to break lower than this low end of the range for so long still makes holding out for a better rate a risk.
The California mortgage company suggests that those who are near to closing lock in their rates, as the risk of rates bouncing higher outweigh the benefit of a slightly lower rate if they improve in the very near future. Those who have longer lock periods ahead would not lose out by locking in, but those who are bigger risk takers may also choose to float. For those just getting started with their home loan process, the company notes that locking in on application would give these people a great starting rate and if they do this with a lender that allows for renegotiation, they may also have the opportunity to get a better rate if one presents itself before they close on their loan. They should also take their time to find the right home loan, since the mortgage rate it just one of the many factors (albeit, a very important one) that make for a good home loan.
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 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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