San Diego, CA (PRWEB) September 16, 2014
After weeks of sideways or higher movement for mortgage rates, today marked the first time this month where mortgage rates were just slightly improved according to Mortgage News Daily. This slight decrease is not something that borrowers should take for granted however, as the FOMC events that will be held tomorrow will likely result in more volatility in bond markets and subsequent movement one way or the other for mortgage interest rates. Blue Home Loans, Inc. a California full-service mortgage company that has been helping borrowers find the best loan programs and rates for many years, has been keeping track of recent mortgage rate trends and offers some advice for borrowers who are hoping to lock in a good rate for their home loan.
A September 16th report from Mortgage News Daily gives some insight into today’s mortgage rate movement. It says, “Mortgage rates experienced their first genuine improvement of the month today. The gains were nothing if not very small, but they ended an uncommonly long 11 business day streak of sideways to higher rates. 4.25% remains as the most prevalent conforming 30yr fixed rate for top tier scenarios with the day-over-day changes being limited to closing costs. Essentially, the losing streak of the past 2 weeks was the market's way of getting into position for tomorrow's big announcement from the Fed. Market participants have been concerned that the Fed could change their verbiage in such a way as to suggest an earlier eventual rate hike.”
The article further explains, “This debate has focused on the words "considerable time" which the Fed has been using to refer to how much time would likely pass between the end of asset purchases and the first rate hike. But whether that phrase changes or not, the Announcement will still be scrutinized for any additional clues. There's tremendous potential for volatility tomorrow afternoon. It's a situation where risk-takers could easily be rewarded if the Fed is friendlier than expected. The risk is equally present though, as tomorrow could confirm a new direction for rates and the end of positive trend that's been in place so far in 2014.”
Blue Home Loans states that given tomorrow’s potential for volatility, locking in would be the safest course of action, one that those who are near to closing would especially be wise to take. However, those who can afford a little more risk might want to wait and see what happens after the FOMC announcement tomorrow. Rates could possibly go lower after tomorrow’s events and even if they do not, there may still be a very short time frame where borrowers can lock in their rates before the announcement has time to affect mortgage rates.
Those who do choose to float into tomorrow’s events should be able to rely on their loan officers to keep a close eye on tomorrow’s events so that they will be able to lock at a moments notice if things go south. Those who are just starting their loan process will have the chance to lock on application, but if they do choose to float it is important to find a loan company that will keep them informed of the best opportunities to lock in a good rate, or when locking would be the best option to prevent 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 states,
“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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