San Diego, CA (PRWEB) August 10, 2014
Last week’s mortgage rates were driven mainly by geopolitical risk and the weakening Eurozone economy rather than local economic data, which is usually where rates take their cues from. This dynamic makes it more difficult to guess where mortgage rates might move in the week ahead, as these factors are much less predictable than data coming from scheduled reports. 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 8th article from Mortgage News Daily shows a perfect example of how quickly these international situations can escalate and then resolve themselves, bringing rates along for the wild ride. It says, “Remember the Polish Foreign Minister's warning about Russian troops amassing at the Ukrainian border? No? Can't blame you there, but what about the NATO general with a similar statement the next day? 'Who cares' you say? Another understandable response, but to be fair, markets cared at the time. In fact the growing threat of a Russia/Ukraine war has been one of leading concerns fueling a bond market rally.”
The article continues, “So it's no surprise that bonds scurried back to weaker levels after the Russian Defense Ministry said the country ended "drills" on the Ukrainian border and would be returning to permanent stations. Fortunately for MBS, Treasuries took the brunt of the punishment, but unfortunately, not enough to avoid negative reprices for a slight majority of lenders. Still, there had been a cushion of gains in place from the overnight headlines that the US could (and shortly thereafter "did") begin airstrikes in Iraq. The net effect is a Treasury market that ended the day relatively unchanged, and MBS prices that were about an eighth of a point weaker.”
Blue Home Loans explains that these geopolitical factors can continue to affect mortgage rates in the week ahead. There does seem to be some cooperation going on in the Ukraine situation, and this may mean less of an influence to mortgage rates from this factor; but of course, as mentioned before, geopolitical events can flare back up without warning. Because of this, those who are looking out for the best rates this week will need to keep an eye on the international news, and also keep in close contact with their loan officer in case there is a good opportunity to lock in a good rate or avoid higher rates down the line.
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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