San Diego, CA (PRWEB) July 31, 2014
Yesterday’s release of the GDP data caused mortgage interest rates to rise to their highest levels in more than a month. Even the FOMC announcement, which usually takes precedent when it comes to influencing mortgage rates, was overshadowed by the GDP report which was significantly stronger than expected. 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 July 30th report from Mortgage News Daily gives some further insight into the current situation with mortgage rates. It says, “For weeks, we've discussed the prospects for increased volatility centered on today's economic calendar. The chances of a bigger move were much higher going into today's GDP data, and a bigger move is exactly what we got. Unfortunately, it was in an unfriendly direction. GDP was significantly stronger than expected, which caused an equally significant amount of weakness in the secondary mortgage market. With the data released at 8:30am and most lenders not putting out their first rate sheets until after 9am, mortgage rates shot rapidly higher right out of the gate.”
This same article continues, “Bond markets (which include the mortgage-backed-securities or "MBS" that most directly affect mortgage rates) continued to weaken throughout the day, and never really leveled-off until 1-2pm. When MBS fall enough during the day, lenders will issue a "reprice," which is just another way of saying rates are higher or lower effective immediately. Most lenders repriced to even higher rates in the afternoon. Things calmed down after that, and even the Fed policy announcement did little to change the tone for better or worse.”
Blue Home Loans Inc. explains that while yesterday’s losses are not the end of the world (current levels are still near the lower end for 2014 mortgage rates) those who had been considering locking in earlier this week but failed to do so will undoubtedly feel they missed some good opportunities. For many people in this situation, probably the best course of action would be to continue to float their rates. This week still has a number of important events coming up, ending with Friday’s always influential Jobs report.
Optimistically, these upcoming events could cause rates to level out and go back down again --- or they could climb much higher. Because of this, the advice to float would mainly apply to those who still have a good amount of time before they need to lock in their rates. For those who are near to closing, it may be better to settle for today’s rates and take that loss rather than risk even bigger losses if rates continue upward towards the end of the week. Those who are just starting out with their home loan application should also take their time to find the right loan program, as rising rates makes this much more important for those who are still hoping to save money on a home loan.
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 money 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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