San Diego, CA (PRWEB) February 20, 2015
Mortgage rates experienced a lot of volatility in the past week, with European headlines and domestic concerns all adding to the uncertainty in the secondary mortgage market. However, despite all this volatility mortgage rates were mostly unchanged at the end of the week, but there is still plenty of drama in store which could make for a completely different story for mortgage rates next week. California full-service mortgage company, Blue Home Loans, Inc., has been helping clients to gain the maximum amount of savings on their home loans for many years and now takes a look at the recent activity in mortgage rate levels and gives some advice for those who have home loan plans for the near future.
The California mortgage company takes a look at the report from real estate news website, Mortgage News Daily, posted this February 20th, 2015, which says, “Mortgage rates are ending the day in very similar territory to yesterday's latest levels but have had something of a wild ride between now and then. At issue is the ongoing drama between Greece and its Eurozone creditors. There was some risk heading into today that a temporary agreement would be reached to extend Greece's bailout agreement, and indeed that's behind the volatility. But why would a Greek bailout extension be a risk for mortgage rates? Greece has actually played an integral role in domestic market movements over the past several years. This most recent flare up is partially responsible for the low rates we've enjoyed. Long story short, the "drama" means increased risk that Greece will default, which in turn benefits the Eurozone's most stable sovereign debt, such as Germany's.”
The MND article explains, “When we talk about 'sovereign debt,' it's the same thing as US Treasuries at home, and in fact, Treasuries reap some of the benefits from the excess demand created by drama in Europe. Think of it as nervous investors seeking safer havens. Finally, as you know, Treasuries and the Mortgage-Backed-Securities that dictate mortgage rates tend to stick fairly close together. That's why a Greek deal is a risk. It saps demand for safe haven debt. Lower demand = higher rates. Thankfully, the news of the Greek deal hit markets that were already in much stronger territory for the day. That means that most lenders started out with lower rates this morning and although mid-day volatility led them to raise rates in the afternoon, it was only back to yesterday's levels.”
Blue Home Loans explains that next week might offer more clues as to where the long term trend in mortgage rates is headed. Monday brings the deadlines for Greece to finalize some of the details included in today’s deal and Fed Chair Yellen’s congressional testimony on Wednesday will give markets more information so that will have a better idea of what to expect from the Fed in the next few meetings. These events have the potential to help rates recover some of the recent losses or lead to even more increases. Because of this volatility, the California mortgage company suggests that those who are in the market for a home but who have not yet applied for a loan should consider doing so as soon as they can. This is because there is a chance that mortgage rates will continue to rise in which case the rate quotes that are now being offered may be the best rates available for some time.
Those who are willing to take the risk of floating their rates will also want to have an active loan application in process so that they will be able to lock in any gains or avoid further losses if rates rise too high. In either case, California mortgage borrowers who want the highest chance of finding the best mortgage rates in California can put their trust in the mortgage experts at Blue Home Loans, Inc.
Co-owner of Blue Home Loans, Brandon Blue, says, “I love the personal satisfaction that I receive when I am able to save my clients both time and money--getting them the best deal I possibly can on their home loan. Whether you are looking to purchase your dream home, or want to save money on your existing home, feel free to give me a friendly phone call. I promise that you will not be given some cheesy sales pitch, and that I will listen to your mortgage needs without utilizing any high pressure sales tactics.”
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.
California Bureau of Real Estate -- BRE #01938557 NMLS #1162386