San Diego, CA (PRWEB) December 26, 2014
Mortgage rates have been climbing this holiday week, ostensibly due to the lack of market participation causing exaggerated movement in bond markets. Today, however, mortgage rates bounced back from recent highs, erasing the increases of last Wednesday. Blue Home Loans, Inc., a full-service California mortgage company that has been helping clients to save the maximum amount on their home loans for many years, takes a look at these recent changes in mortgage rates and offers some advice for those with home loan plans for the near future.
The company takes a look at the December 26th report from Mortgage News Daily, which says, “Mortgage rates bounced back moderately today, erasing Wednesday's losses. Unfortunately, Wednesday's losses weren't very big compared to Tuesday's, which are still very much intact. That leaves the most prevalently-quoted conforming 30yr rates at 3.875% to 4.0%, depending on the lender and their holiday-week pricing strategies.”
Blue Home Loans explains that while mortgage rates have risen considerably during this holiday week, the current levels are not a good indication for what mortgage rate trends will look like after traders get back to work after the holidays are through. The MND article gives some insight into why rates have risen as they have and what affect this has on the bigger picture, saying,
“Most lenders rely on financial markets in order to keep loans flowing through their system. Most simply, lenders have to know what a particular loan is worth on the secondary market and how easily or quickly they can sell it in order to efficiently create rate sheets. During the big holiday weeks, financial market participation is a small fraction of its normal self. Many lenders will opt to keep rates slightly higher than they otherwise would be because they don't have as clear a picture of how loans will move off their books. The cloudier that picture, the higher the risk for lenders. So by raising rates, they're essentially compensating themselves for taking additional risks.”
Blue Home Loans advice for those who are planning to purchase a new home or refinance a current one is to wait at least till Monday to see how rates level out after normal trading sessions resume. As is always the case, there is no way to accurately predict where mortgage rates will head because of how many factors can affect mortgage rate movement. However, when mortgage rates move strongly in one direction during a holiday week, there often follows a significant reversal to restore the balance. This may or may not happen this coming week, but it is something that home loan borrowers can keep their eyes on.
California borrowers who want to be sure that they benefit from the best California mortgage rates will find that they can count on the mortgage experts at Blue Home Loans to find them the best rates and mortgage programs for their unique financial situation and home loan goals. The Blue Home Loans website states, “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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