Mortgage Rates Hit 3 Month Lows Going Into Friday’s Big Jobs Report

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California mortgage company, Blue Home Loans, Inc., comments on current mortgage rate developments and gives some advice for mortgage borrowers at this time.

In a surprising move, mortgage rates hit 3 month lows today, right ahead of tomorrow’s very important NFP report. This development goes against the trend of most NFP weeks seeing increasingly higher rates each day before the report. Blue Home Loans, Inc., a full service California mortgage company headed by the father and son team, Robert and Brandon Blue, which has been providing borrowers with the best mortgage programs and rates available for many years, comments and this current situation and gives some advice for loan borrowers at this time.

A May 1st report from Mortgage News Daily explains the situation, saying, “Mortgage rates fell at the fastest pace in over a month today bringing them to their lowest levels since early February. The motivation for a move of this size isn't readily apparent, but tomorrow's Employment Situation Report is likely a factor. The underlying reasons for that are complex, but the gist of it can be explained with an analogy. The financial market participants that trade the securities that end up affecting mortgage rates are like attendees at a sporting event. They may be out of their seats, moving around the stadium, getting a drink or what have you in the time leading up to the start of the game, but there's some sense of urgency to take one's seat and pay attention to the opening pitch, kick-off, jump-ball, etc... “

The same article continues, “In this metaphorical stadium, there are no assigned seats either, so there can be jockeying for position right at the start of the game and the moments leading up to it. The same is true for the jockeying of trading positions in financial markets. Simply put, everyone is trying to find their best seat before the game starts--their best balance of trading positions before the big employment data. This frequently leads to the sort of faster-paced movement we're seeing in bond markets today. Unfortunately, that's tended to go against us on most instances of the big jobs report, but this time, it's been in our favor.”

Blue Home Loans reminds borrowers that the move downwards may not actually be reflected in tomorrow’s NFP report. The report may indeed be weaker than expected, and this could cause rates to continue to improve. However, if the report shows stronger data, this strong move downward for mortgage rates could be reversed quite quickly and a beautiful opportunity to lock in a great rate could be lost. Because of this, Blue Home Loans advises that probably the best course of action would be to lock in before the release of tomorrow’s report, if possible. Those who are near to closing on their loans should especially follow this advice; however, even those who have not started their loan process yet can benefit from this advice by locking in on application, preferably with a lender that allows for renegotiation. This will allow them to keep today’s low rates in reserve while keeping their options open in case something big happens and rates dip lower before their loan closes.

Blue Home Loans can help those 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 hundreds of thousands of dollars on their loans. The company recently experienced an expansion thanks to an increase in clients drawn by rave reviews of the company. As a result, Blue Home Loans, Inc. now offers many exciting new resources and loan programs that are not available with many other companies. The Blue Home Loans website now 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 or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.

CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #93836

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