San Diego, CA (PRWEB) May 18, 2014
Mortgage rates had a very good run last week, going from the lowest levels in six months, to the lowest levels in 11 months! But by Friday the trend had reversed somewhat, with rates just slightly higher. The question most people in the market for a mortgage loan are probably asking right now is - where will mortgage rates be this week? 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.
To get a better picture of what rates are likely to look like this week, it can be helpful to look at the last day of info for mortgage-backed securities (MBS), the bonds which most directly influence mortgage interest rates. A May 16th report from Mortgage News Daily says,
“Although it's true that bond markets moved into weaker territory after this morning's data, it's even more true that the weakness looks like a mere continuation of yesterday's. In other words, this move began just after 10am yesterday when Fannie 3.5s made it within 1 tick of 103-00 and 10yr yields dipped briefly into the 2.47's. Stronger Housing Starts data contributed to the move, but given the counterpoints (super high multi-family component and not much growth in single-fam), markets would have been within their right to trade in the other direction if they were so inclined. The missing ingredient for trading in the other direction was the absence of another European bond market rally. In a general sense, markets agreed that the super-aggressive rally would take a break today. We didn't really see enough of a move in the other direction to conclude that a big bounce is about to happen, but perhaps just enough to be worried about next week.”
Blue Home Loans explains that when bond prices go down, particularly MBS prices, mortgage interest rates go up. This could be the case going into this new week. While the longer term rate predictions are pretty much up in the air due to a number of factors, and rates could continue to see new lows this year, in the short term it is possible that rates could bounce higher before they get lower. This is something that those who are looking for a good rate for their home loan should consider.
The California mortgage company advises that those who are near to closing should definitely consider locking in these current mortgage rates, which are still near to the recent low levels, as there is always a risk that mortgage rates could bounce higher in the short term. 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.
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