San Diego, CA (PRWEB) August 02, 2014
Mortgage rates reached the highest levels in more than a month this past week, but got a break after Friday’s Jobs Report resulted in an end of the week recovery for mortgage rates. This move is quite the victory for mortgage interest rates, since things could have gone very differently if the Jobs Report turned out to be stronger than it was. 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.
An August 1st report from Mortgage News Daily gives some further insight into the current situation with mortgage interest rates. It says, “Mortgage rates were able to recover some of the ground lost this week after the important Employment Situation Report showed slightly less job creation than expected. Had the report been stronger, rates could have easily continued the week's strong move higher. As it stands, we're settling down very close to Monday's levels, which is a major victory based on the tenor of the past 3 days. The most prevalently-quoted conforming 30yr fixed rate remains at 4.25%, but 4.125% is much more viable than it was yesterday.”
That same article further explains, “Today's victory is very important in that it thwarts what could have been a much bigger move higher. While there's never any guarantee that such a move couldn't simply be delayed, we can still glean some reassuring clues from recent activity. Chief among these is the role of European markets in US rate movements. Mortgage rates are most-closely tied to the movement of mortgage-backed-securities or MBS. MBS, in turn, tend to move in close concert with certain US Treasuries, especially 10yr Notes. Taking the correlation one step further, Treasuries also tend to move in the same direction as European bond markets, though the size of the movements can vary quite a bit.”
Blue Home Loans explains that last week European borrowing rates reached all time lows, and since rates in the US often react to pressure from Europe, it is unlikely US mortgage rates will rise significantly without Europe showing a big turn around from its current situation. This does not mean that rates will not go up for other reasons; however, Europe’s decreasing rates serve to put an added weight that could US mortgage rates from rising too quickly.
Given the current situation, it might be wise for most borrowers to float their rates, at least over the weekend, as some lenders may not have had the chance to factor in all the improvements that are warranted given the weaker than expected Jobs Report. However, those who are very near to closing on their loans should consider locking in as soon as they have the chance, as there is always a chance that rates could surprise everyone and be higher come Monday. Those who have not yet started their loan processes should also be aware of the current situation and aim to get the proper loan for their needs so that they will be able to save money despite rising rates.
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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