San Diego, CA (PRWEB) May 05, 2014
Mortgage rates have been defying expectations lately, ending what probably should have been a rough week for rates at the lowest levels in six months. So what is behind all the seemingly contrary mortgage rates movement and what should borrowers expect going into this week? It is hard to say, as even the most informed mortgage rates expectations and predictions are never set in stone. However, Blue Home Loans, Inc. a California mortgage rate company that has been providing the best rates and loan products to CA residents for years, takes a look at some of the factors that will probably be impacting rates in the week ahead in order to give borrowers a clearer understanding of what may lie ahead.
An article from Mortgage News Daily, posted on May 5th, gives a quick overview of the current situation when it comes to mortgage-backed securities (MBS) which most directly influence mortgage rates. The article says, “Last week ended in ground-breaking fashion with bond markets clawing into positive territory despite a substantially better-than-expected Employment Situation Report. It was the biggest beat that's ever resulted in a positive day for mortgage rates. In searching for justification for such a crazy thing, the easiest place to turn at the moment is to geopolitical risk. Developing events in Ukraine were certainly a factor in the rally, but we're left to wonder if they'd been the only factor in bond market demand, would we have still made gains? In other words, did it take "something else" in addition to the Ukraine headlines to bring bonds back into positive territory? - Very likely. We've talked about how traders can rapidly adjust positions at the end and beginnings of months, as well as leading up to Nonfarm Payrolls. We had all three of those things happening last week.”
The MND article also talks about how the demand in the global bond market affects U.S. Treasuries, especially core European debt. Blue Home Loans explains that these international factors often spill over and affect MBS and national mortgage rate levels. Because of this, there may be some influence coming from the European Central Bank’s monthly policy meeting this Friday. There has been talk of a prospective European QE program, which would likely benefit rates, but this is not expected to happen just yet. Aside from this, potential market movers this week include the Q & A session from the President of the European Central Bank after its meeting, as well as the Jobless Claims report, and Fed Chair Yellen speaking before the Senate Budget Committee, all of which will happen on Thursday. ISM Non-Manufacturing data released earlier today did knock MBS levels back a bit, but expectations for where rates will head this week remain focused on geopolitical risk and attempts to break out of the current range.
Because predictions for mortgage rates this week are still up in the air, Blue Home Loans suggests that the safest course of action, especially for borrowers who are near to closing on their home loans, is to lock in the current rates, which are still at the lowest levels they have been in a great while, at an average of 4.24% “best execution” for 30 year mortgages. 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 current 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. 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.
CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #93836