Mortgage Rates Slightly Higher After Yesterday's Abrupt Decrease

San Diego, CA (PRWEB) May 29, 2014

After dropping nearly to the 4 percent mark yesterday, today ended with mortgage rates slightly higher despite a poor GDP report in the morning which initially led to slight improvements. 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 May 29th report from Mortgage News Daily gives an overview of the current situation. It says, "Mortgage rates began the day in even better shape than yesterday, but market volatility prompted most lenders to raise rates in the afternoon. That leaves today's rate sheets in just slightly weaker territory compared to yesterday, but still better than any other day of the year. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) remains at least as low as 4.125%, with some lenders closer to 4.0%. Many borrowers will see today's weakness in the form of higher closing costs vs yesterday. Expressed in terms of effective interest rates, the increase equates to 0.01%. As we discussed yesterday, the first move higher in rate following yesterday's strong move down wasn't likely to be the biggest one. Indeed that will now clearly be the case considering the modest 0.01% increase in effective rates. We can also keep tabs on the newfound strength by checking in with Treasury yields. While mortgage rates are most directly affected by Mortgage-Backed Securities or MBS, all sectors of longer-term fixed-income markets (which include MBS!) are sensitive to what's happening in the Treasury market. Mortgages won't always move lower or higher in the same way as Treasuries, but if the latter is potentially bouncing on a long term low, mortgage rates likely will be as well."

Blue Home Loans explains that this bounce in rates, however small, might serve as a reminder to borrowers that locking in a low mortgage rate is always the safer option. As for now, there is no telling whether rates will go down again or start to head upwards. Key factors scheduled for next week will likely give a clearer picture as to where rates are headed, but for now there is the possibility that rates could take baby steps upwards until next Wednesday - after which they could get even higher if the information from the scheduled reports and meetings goes against rates. Because of this, 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.

California Bureau of Real Estate -- BRE #01938557 NMLS #1162386

PDF Print