San Diego, CA (PRWEB) June 06, 2014
Yesterday saw mortgage rates move just slightly higher after the highly anticipated ECB meeting, which puts the focus for substantial mortgage rates movement on today’s NFP report. 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 5th report from Mortgage News Daily gives an overview of the current situation. It says, “Mortgage rates finally ended a 5-day losing streak, moving lower for the first time since May 28th. Today's big order of business was the European Central Bank (ECB) Announcement. What does the ECB have to do with mortgage rates? Quite a lot actually. Expectations for rate cuts and other accommodation measures have been helping bond markets in the US move lower in rate for two months, and mortgage-backed-securities (MBS) are a key component of that market. The past 4 days, however, have seen a noticeable departure from the strength and stability that preceded them. This can be thought of as a last minute adjustment in markets ahead of receiving two days of important data. Today's ECB news was the first of those two days, and it essentially provided an opportunity for the ECB to put their money where their mouth was. For the most part, they did, so bond markets responded favorably.”
The same article states, “In terms of the effects on mortgage rates, the most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is now more evenly split between 4.125% and 4.25%. The latter began taking over yesterday. Some borrowers will see today's strength in the form of lower closing costs vs yesterday. Expressed in terms of effective interest rates, the increase equates to 0.04%. Tomorrow brings another piece of important information. The Employment Situation Report is the undisputed king of economic reports in the US and it always has the potential to cause big changes in rates. It's normal level of potency may have been somewhat muted if today's news caused more of a stir, but since it didn't, the employment data is the last chance for a big move this week.”
Blue Home Loans explains that the meeting yesterday had the potential to move mortgage rates in a big way; however, it appears as if a lot of the positivity that was anticipated about this meeting was already priced in over the past few weeks, possibly a little too freely. As a result, instead of moving rates lower, rates have started to move up during that past few days in order to account for the imbalance. Because yesterday’s meeting did not result in any drastic action that would cause rates to go lower, rates continued on the slightly upward trend. Now it is up to today’s NFP report to determine what level rates will likely be at for the rest of the month.
The California mortgage company explains that a strong NFP report could result in even higher rates, so those who are not willing to lose out on the current home loan rates that are still near the lowest levels of 2014 should consider locking in as soon as they are able, especially if they are near to closing on their loans, as even a temporary mortgage rate spike could mean paying much more on their mortgages. 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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