San Diego, CA (PRWEB) July 20, 2014
Mortgage rates saw a lot of movement last week, first going up and then back down towards the end of the week in response to geopolitical risk. But as the new week rolls around it is not clear whether these same influences will be in play or how much they will affect mortgage interest rates if they are. 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 report from Mortgage News Daily posted at the end of last week, July 18th, gives some insight into the scene going into the new week. It says,
“Today's somewhat counterintuitive strength is really the story of yesterday's completely understandable hesitation. Yesterday was driven by several unexpected and relatively shocking headlines. While it's not uncommon for bond markets to respond to such events, it's just as likely that the trading levels will bounce back a bit after the first phase of the reaction. Whether that happens sooner or later, lenders don't perceive such events as having a lasting impact on the bond prices that dictate their rates. In other words, yesterday's improvements in mortgage rates belied the scale of the market movement. One additional factor here was that the last push in markets yesterday came too late in the day for many lenders to adjust rate sheets. So rate sheets never fully reflected the market gains. That left them in a better position today to soak up a bit of market weakness without any profound effect on rate sheets.”
That same article continues, saying, “4.125% remains the most prevalently-quoted conforming 30yr fixed rate for top tier scenarios. When it comes to geopolitical risks, a lot can happen over the weekend. The baseline scenario is for that 'bounce back' mentioned above, but on the chance the situation in Ukraine or Israel deteriorates further, rates could continue to improve. We're really at the mercy of the headlines (or lack thereof). The biggest market movements in the near future are likely reserved for the week after next when several important scheduled events occur in the space of 3 days. We'll discuss that more as it approaches, but that week has a chance to set the tone for the next major rate movement.”
Blue Home Loans explains that with an escalation of the situation in Israel over the weekend, a decline in rates might be in order. However, as is noted above, geopolitical factors are never reliable, as things can change very quickly. What this means for the week ahead is likely more headline watching, and those who are risk averse might consider locking in as soon as they can to be safe. Another thing to keep in mind is that as the end of the month approaches, there is a bigger risk of rates increasing due to end of the month sell off and the usual economic reports that are scheduled at this time. Because of this, the California mortgage company suggests that those who are near to closing on their loans think about looking for a good lock opportunity this week.
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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