San Diego, CA (PRWEB) May 06, 2014
Mortgage rates rose just slightly yesterday, answering the question of whether rates would continue to get better or start to go back up this new week after the wild ride that was last week. However, there is still hope for those who have not locked-in seeing as mortgage rates are still near six month lows. 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.
Blue Home Loans first explains that there was a slight increase in rates – on average – meaning that some lenders actually repriced better than last week. A May 5th report from Mortgage News Daily gives a rundown of what is happening. It says, “Mortgage rates move up just slightly today, after hitting the lowest levels in 6 months at the end of last week. Some lenders who didn't get too aggressive with Friday's improvements were actually in better shape today, but on average, rates were just a bit higher. Even then, they remain very close to the 6 month lows with the most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) holding 4.25%. In stark contrast to Friday's frenzied market movements, today's activity was relatively subdued. Those market movements--especially in Mortgage Backed Securities (MBS)--are relied upon by lenders in determining mortgage rates. When economic data is stronger than expected, MBS generally lose ground, leading to higher rates. While that was the case today, Friday managed to buck that trend in grand fashion, leaving some doubt as to where mortgage rates will find their next inspiration.”
The CA mortgage company notes that because more obvious mortgage rate indicators, such as the Jobs Report, have been overlooked in favor of other seemingly less common factors that affect mortgage interest rates, it can be very difficult to accurately predict how rates will look later on in the week. What does seem obvious now is that mortgage rates are probably at the bottom of the range and the old saying “When you reach rock bottom, the only way to go is up” would seem to apply here – unfortunately when it comes to mortgage rates, this is not a good thing - at least not for those trying to save money on their home loans. Those who are on the fence about locking in current rates should consider that the risk of rates getting higher might outweigh the benefits of waiting around and being rewarded with only a slightly lower rate. Because of this, Blue Home Loans advises that the best course of action for most borrowers would probably be to lock in their mortgage rate as soon as possible.
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