San Diego, CA (PRWEB) July 18, 2014
Rates had been steadily rising at the start of the week, coming up from this month’s lows seen the week before, but yesterday rates started to fall again. The reason? - International turmoil causes investors to move to “safe haven” assets such as U.S. Treasuries and mortgage-backed securities (MBS) which most directly influence mortgage rates. Yesterday brought a number of events that resulted in this scenario, probably the most notable of which was the shooting down of a Malaysian airliner over the Ukraine/Russia border. 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 earlier report from Mortgage News Daily, posted this July 18th, gives some further insight into what to expect from today’s bond markets and mortgage rates. It says, “Although economic data had some small role to play in yesterday's strong bond market rally, the day was really all about geopolitical risk. If we've learned anything about geopolitical risk as a market mover, it's to not rely on it as a long term guidance giver. Even after the risk merely levels off, markets usually bounce back. Maybe not today, maybe not tomorrow... Maybe not even soon, but on the other hand, it could be soon! Point being: don't take the newfound move of 10yr yields into the 2.4's for granted.”
That same article also says, “Whether or not things play out in this manner remains to be seen. Markets are essentially reduced to headline watching today as the event calendar is light. One thing to keep in mind is that geopolitical risk often undergoes significant change over the weekend, so it's less safe than normal to assume Monday's rates will be close enough to Friday's. That's a double-edged sword though. A bigger flare up in risk could make for bigger improvements. Simply put: more risk, more reward when it comes to floating, but if recent history and technicals are an indication, "risk" is probably still edging out reward if the rally doesn't continue in spades today.”
As the above quotes make clear, while today’s rates are not too far down from yesterday's, it could still be a risk to float over the weekend, especially for those who are dealing with shorter lock periods. Blue Home Loans notes that this could be a signal for those in this situation, and others with lower risk tolerances, to lock in their rates. More daring borrowers can of course wait it out, and see if maybe rates will continue in this downward trend next week. For those who have not yet started their loan process, locking in on application is always an option, but taking the time to find the right loan program should still be the priority rather than jumping into a loan simply to snag today’s rates.
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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