San Diego, CA (PRWEB) June 02, 2014
Mortgage rates have been staying near the lowest levels of the year over the past few weeks, and this week has the potential to challenge those lows or else break the downward trend and see mortgage rates move higher. This is because of the many important reports and meetings scheduled this week that could have a big impact on the bond markets which directly influence mortgage interest rates – especially a meeting of the European Central Bank (ECB) which is scheduled for this Thursday. 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 mortgage rate expectations and offers some advice for those who are not sure how to proceed with their home loan plans.
A June 2nd report from Mortgage News Daily gives a brief overview of the current situation. It says, “On the first week of most any month, the focal point for bond market trading is unquestionably Friday's Nonfarm Payrolls (NFP)--and with good reason. It's the single most important piece of economic data for US markets. Major economic reports are usually the most important considerations for bond markets. But not this week. As early as April 4th, the potential for the European Central Bank (ECB) to embark on some form of quantitative easing, along with rate cuts, was already on our radar. In fact, I went so far as to label it the day's biggest market moving consideration, even though it was an NFP day! Since then, market participants and TV's talking heads have come to a unanimous agreement that this week's ECB meeting is a very big deal. To be sure, it was a pretty easy consensus to come to after Draghi said the council was "ready to act at the next meeting"”
Blue Home Loans explains that this meeting will have a big impact on rates – but exactly how they will be influenced remains to be seen. It stands to reason that if all hints towards a positive outcome for the ECB meeting are true, mortgage interest rates should go lower. However, rates over the past few weeks have been low, possibly due to lenders repricing in anticipation of the expected stimulative move from the ECB. This means that when the actual meeting occurs, if the announcement does not live up to expectations, rates could bounce up instead of going down, at least temporarily.
And the ECB meeting, while being the most important market mover this week, is by no means the only thing factoring in to where rates will move. If the announcement on Thursday does not move rates very strongly (due to the previously stated reason) the NFP report the following day would likely decide which way rates will head. Aside from these important factors, there is also the ISM Manufacturing Index today and ISM Services Index on Wednesday, both of which can also have a strong influence on bond markets and mortgage rates. All this is to say, that this week has the potential to be a big one for mortgage rates – but how exactly rates will be affected remains to be seen.
For the mean time rates are still near to the lowest levels seen in 2014, and because of this, and the risk that rates could bounce up, at least in the short range, the California mortgage company advises those who are near to closing on their loans that locking in now would be the safest move. 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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