San Diego, CA (PRWEB) May 07, 2014
Mortgage rates fell to new six month lows today, after moving slightly up from what had been the lowest levels in six months yesterday. This new development comes after a fairly uneventful congressional testimony from Fed Chair Janet Yellen earlier this morning and the new levels could mean a break below what has been the long term range so far. 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, comments on the current situation with mortgage rates and offers some advice for those who are not sure how to proceed with their home loan plans.
A May 7th report from Mortgage News Daily says, “Mortgage rates continued pushing into the lowest levels in more than 6 months after a docile congressional testimony from Fed Chair Yellen this morning. Financial markets and mortgage lenders were cautious ahead of the 10am speech, but improved afterward. A majority of lenders issued mid-day reprices, bringing rate sheets to levels not seen since November 1st. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is already straddling 4.25% and 4.125%. Today's improvement equates to an effective drop of 0.04%. Today's strength means that rates are now officially "testing" a break below the longer term range--a range that has remained intact since the beginning of February. Of course we're already below that range today, but when it comes to looking for bigger-picture shifts in the trend, we're looking for a certain combination of TIME spent outside the trend and DISTANCE between the edge of the trend and current levels.”
The same article further explains, “If we were only looking at mortgage rates, the combination of time spent under the 2014 range and the distance below the previous lows is looking pretty promising. If we look elsewhere, however, to some of the other factors that can impact mortgage rate momentum, it still makes sense to be cautious. One of the factors is the situation in Ukraine that's thought to be keeping some extra downward pressure on interest rates in the US. The other consideration is that the Treasury market, which is a very close companion for mortgage rates, hasn't quite shown the same desire to break its own range, and that's something we'd need to see in order to have more confidence in a more pronounced move lower. That's not to say it can't happen, simply that where mortgage rates seem rather convinced, the broader market for interest rates isn't quite there yet.”
Blue Home Loans explains that while it may seem tempting to float at this time to see whether rates have the potential to move any lower, the fact is that it could be very risky. A lot of the blame for the lower mortgage rates over the last week or so has fallen on the tense political situation in Ukraine. While this may still be a factor in the future, the reality is that the situation overseas could change without notice, lifting the pressure on rates to stay low and possibly causing a large increase. Because of this, and the other factors mentioned in the MND quote above, the California mortgage company advises that it might be best for borrowers to lock in today’s low home loan rates.
Those who are near to closing on their home loans should especially consider locking in the currently low mortgage rates available, but 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 current 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 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.
CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #93836