San Diego, CA (PRWEB) May 24, 2014
Mortgage rates remained steadily near the lowest levels in 11 months this whole week, ending on Friday with a day of average interest rates that remained totally flat despite some movement in bonds. This leaves the question open as to whether rates will be higher or lower when markets open again after this long weekend. 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.
To get a better view of the situation before the long break began, a May 23rd report from Mortgage News Daily gives an overview of the situation with mortgage-backed securities (MBS) the bonds which most directly inform mortgage interest rates. The report says, “Very little has happened so far on this holiday-shortened Friday (Monday's the holiday, but MBS/Treasuries close 3 hours early today). The lack of activity will be doubly true from here until 2pm. As such, this "mid-day" will also serve as the day's recap unless there's a substantial change in market conditions over the next 2 hours. Treasuries traded just slightly stronger overnight, but improved most during the first hour of the domestic session. Market movers are impossible to pin down with certainty, but the fact that rates are adhering to the technical consolidation pattern in place since May 15th is as good as any. In other words, Treasuries and MBS have been in tight, consolidative trading ranges since hitting the year's best levels on the 15th, and today's strength merely serves to keep them in those ranges.”
Blue Home Loans explains that bonds, especially MBS, have an inverse relationship to mortgage interest rates. Usually, when bond prices go up, mortgage rates go down, and vice versa. What can be seen in the above excerpt is that there is not much movement in MBS and there was zero movement in interest rates yesterday, as well. What does this mean for mortgage rates predictions going into next week? - Only that there is no obvious factor right now that would sway rates much higher or lower. But this does not mean that rates will be unchanged. Mortgage rates have been known to surprise everyone by responding to factors which would not usually seem that important. This means that despite the steady levels experienced recently, those seeking the best mortgage rates should still keep on their toes.
This is especially true for those who are near to closing on their home loans. Because rates have been at the low side of the current range without breaking any lower for such a long time frame, there is an increased risk that rates will bounce up, even if they do eventually break lower later. Because of this, it may be wise for those who are near closing to lock in their rates at the soonest opportunity available to avoid being stuck with a higher rate. 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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