San Diego, CA (PRWEB) June 03, 2014
Mortgage rates went slightly up yesterday, coming back into line with the levels that were sustained through the end of last month. This upward movement is likely just the beginning of the changes that will happen leading up to Thursday’s all-important ECB meeting and Friday’s NFP report. And after that, there is no telling what state rates will be in. 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 June 2nd report from Mortgage News Daily gives a concise rundown of the current situation. It says, “Mortgage rates moved higher today, returning in line with the same "sharply sideways" levels seen just before the most recent push to 2014 lows last week. Bond markets including MBS (the mortgage-backed-securities that most directly affect rates) unwound some of the exuberant trading that helped May finish out with most of the gains intact. Traders are under certain constraints when it comes to the end of the month and those constraints were helpful for rates last week. With the new month underway, we saw a bit of a push back in the other direction even before this morning's comedy of errors surrounding economic data.”
The same article continues: “…That comedy didn't have everyone laughing as a very important report on Manufacturing was initially showing much weaker results. Weaker economic data usually coincides with lower rates and indeed bond markets improved after the release (bond market improvement connotes higher prices and lower yields/rates). Shortly thereafter, the agency reporting the data announced their calculations were off, and the report was actually much closer to expectations. Bond markets moved into much weaker territory and many lenders reissued rate sheets with negative revisions (read: 'higher rates').”
Blue Home Loans explains that increases leading up to the end of a week with an NFP report (which is the most important economic report of the month) are normal, but this week there is something even more important – a meeting of the European Central Bank (ECB) which will have a big impact on mortgage rates and the finance world in general. This is because the ECB is expected to decide on some sort of Quantative Easing program. This would be good for mortgage rates, as it would boost the bond markets which directly influence them. However, it is not sure how big the scope of this program will be. Much of the movement of last month was due to reprices based on anticipation of the outcome of this meeting on Thursday. The danger is that if the announcement comes back and fails to meet expectations, rates could bounce up to correct themselves.
Rates could also continue to inch up throughout the week, as well, and then get higher, lower, or (somewhat disappointingly) stay the same after this potentially very big week. Because the risk of rates going up seems to outweigh the rewards of floating right now, the California mortgage company advises that it might be best to lock in the current rates since they are still quite near the lowest they have been in a while. This counsel would especially apply to those who are near to closing on their home loans, but 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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