San Diego, CA (PRWEB) June 01, 2014
Mortgage rates dipped near the four percent mark last week, but have otherwise not moved much from the recent lows of the week before, and actually the week before that, as well. The reason for the lack of movement could be that market participants are hunkering down in anticipation for what this new week holds – economic reports and important meetings that could heavily impact interest rates in the long term. 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 recent report from Mortgage News Daily, posted on May 30th, explains some of the reasoning behind recent mortgage rates movement. It says, “Trading in bond markets has recently grown more exciting than it had been from February through April. As May draws to a close, we can look back and see more clearly that much of the positivity was (and still is) a factor of expectations for the European Central Bank (ECB) to embark on some sort of asset buying program, similar to the Fed's QE. The ECB is also expected to cut its policy rates. That's the sort of big-picture development that global bond markets have a hard time ignoring. If one, small, individual nation were considering such a thing, no big deal. But the EU, collectively, is massive, and the trends in European bond markets have a clear and consistent effect on US bond markets.”
The same article continues: “Right now, the expectation for this stimulative move has made it very unfashionable for the likely beneficiaries to act as if they won't benefit. More simply, the safest European debt along with US Treasuries would certainly benefit from the potential policy announcement (meaning rates would fall). Because markets are reasonably sure at least some of the potential changes are coming, they're already out ahead of them (meaning that rates have fallen in anticipation of having reason to fall next week).”
Blue Home Loans explains that while the potential for rates to go down after this week could be very promising, borrowers should still be cautious. The fact that many lenders have already repriced to account for expected changes at the end of this week could mean a bounce much higher if the information following this week’s reports and meetings fails to live up to these expectations. Because of this possibility, the California mortgage company suggests that locking in the current rates might be the best option, especially for those who are near to closing on their loans. 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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