San Diego, CA (PRWEB) June 07, 2014
Yesterday showed the last big piece of data from what could have been a very big week for mortgage rates – the NFP report. However, despite this report, and the ECB meeting from the day before, both of which had the potential to move mortgage rates in a big way, rates have remained pretty much right in line with recent levels. 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 6th report from Mortgage News Daily gives a good synopsis of the situation. It says, “Mortgage rates remained very close to yesterday's latest levels, though that varies depending on the time of day. Though they returned closer to 'unchanged' in the afternoon, earlier this morning, rates were slightly stronger (lower) after an uneventful Employment Situation Report. This is the most important piece of economic data in the US, and for it to come in so perfectly in line with forecasts is rare. For that to happen a day after the European Central Bank (ECB) adjusted policy almost perfectly in line with forecasts is downright spooky. Bond market trading levels (which ultimately inform mortgage rates) are right where they were hours before yesterday's ECB news, like it never even happened.”
That same article continues, “It has ended up being the case this week, that much of the potential market movement associated with this important events actually took place before Memorial Day. In other words, expectations for a certain set of actions by the ECB were widely-enough accepted that rates began falling to levels that traders felt were best-aligned with the likely events. Today's jobs report was just a supporting actor in this drama, but there too, the consensus was for the decrease in payroll creation from 288k to 218k. Lower job creation tends to coincide with falling rates, all things being equal.”
Blue Home Loans explains that while there was a lot of speculation about the affect this week could have had on mortgage rates with the highly anticipated ECB meeting, in reality the meeting had already done what it could to move interest rates weeks before it actually occurred. If there was an unexpected outcome from the meeting, things could have gone differently, but overall it was what everyone had expected. The NFP results also fell in line with expectations, meaning rates are staying pretty much at the same levels that they have been for a while. In this environment, it is anyone’s guess where the next big motivation for interest rates will come from, and as far as locking or floating goes, the best bet for borrowers is to stay in close touch with their loan officers so that they can get a jump on any new developments.
Those who are near to closing on their loans may wish to go ahead and lock in the current rates, which are just slightly higher than this year’s lowest levels. 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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