San Diego, CA (PRWEB) September 07, 2014
Mortgage rates managed to move slightly higher each day last week, even when other factors seemed to indicate that rates should move down. This was the case last Friday, according to Mortgage News Daily, as rates managed to push back against a weaker than expected jobs report and move higher despite a short rally after its release. Whether the seemingly inexplicable market movements will continue to affect mortgage rates in the week ahead remains to be seen. Blue Home Loans, Inc., a California mortgage company lead by father-son team, Robert and Brandon Blue, takes a look at the trends of the past week to give some insight into what borrowers can expect from the week ahead.
A September 5th report from Mortgage News Daily says, “Mortgage rates were lower out of the gate this morning after the weaker-than-expected jobs report fueled bond market gains. As bond prices rise, rates fall. But bonds--specifically Mortgage-Backed-Securities or MBS (which dictate mortgage rate pricing)--are constantly moving throughout the day while lenders only put out 1-3 rate sheets per day. This depends on volatility and on many days, there is only one rate sheet. Today was not one of those days for most lenders. As the day progressed, bond markets weakened substantially. Eventually, we'd lost everything gained in the morning. Most lenders 'repriced' to higher rates at least once during the slide. Some of them are now in worse shape than they were last night, though others are still slightly better. 4.125% remains the most prevalently-quoted conforming 30yr rate for top tier borrowers.”
The same article explains, “This brings the week to a close with rates having moved higher every single day. While some of that could have to do with broader ebbs and flows that occur in the trading world around the end and beginning of the month, it's still potentially disconcerting. With yesterday's announcement from the European Central Bank and today's weak jobs numbers, we had 2 major events at the end of this week that more logically suggested lower rates. The fact that the underlying momentum was able to overwhelm these would-be allies suggests we remain cautious. These are the sorts of clues that can precede a sustained push to higher rates. Next week will let us know much more about whether or not that's happening.”
Blue Home Loans Inc. suggests that if the increases of last week were simply due to normal beginning-of-the-month trade flows, there is a chance that rates could actually improve tomorrow, especially if the tension between Ukraine and Russia continues to have an affect on U.S. interest rates. However, this is just one possibility. Rates could just as easily stay the same or go even higher. If they do, as the article quoted above states, it could be a clear sign that rates are headed for a more continued push upwards.
The California mortgage company advises those who want to get the best mortgage rates to be on the alert regarding this situation. If rates move upwards, or even just fail to move down, it could be a good signal that it is time to lock in. Those who are near to closing on their loans should definitely consider this as the best option, while those with more time on their hands might wish to wait and see if rates can still improve. Of course, those who do this should have a plan concerning how far they are willing to let rates rise before they lock in to avoid further losses.
On the other hand, if rates do go down, borrowers will need to weigh the situation and decide whether to lock or float depending on their individual loan situation and risk tolerance. California borrowers who choose to use Blue Home Loans’ services can count on the team of mortgage professionals to not only help them find the best home loan for their scenario, but also inform them of the best opportunities to lock in a favorable mortgage interest rate. 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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