San Diego, CA (PRWEB) August 16, 2014
Mortgage rates rallied once again yesterday, bringing rates down to the lowest levels in two months. This downward trend has been mainly influenced by geopolitical risk, most notably the resurgence of violence between Ukraine and Russia, which has pushed investors towards safe-haven assets such as US Treasuries and mortgage-backed securities (MBS), the bonds which most directly influence mortgage interest rates. 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 15th report from Mortgage News Daily outlines the current situation with mortgage rates. It says, “There were numerous headlines swirling mid-morning concerning military violence between Ukraine and Russia. Financial markets responded in a big way with stocks losing quit a bit of ground by noon and US Treasuries falling to their lowest levels since June 2013. MBS, however (the mortgage-backed securities that dictate mortgage rates), were not able to experience quite as much benefit, essentially meaning that Mortgage rates didn't improve nearly as much as other sectors of the bond market.”
The article goes on to explain, “Part of this underperformance in the mortgage market is a simple fact of life when the rest of the financial world is responding to unexpected geopolitical headlines. Treasuries will always glean the most benefit when investors are seeking safe-haven demand amid risks of war, and other serious events around the globe. And while lenders clearly weren't able to pass on as much of the improvements as they otherwise might, we still saw enough of an improvement to bring rates to their best levels since late May. Today's improvements further solidify 4.125% as the most prevalently quoted conforming 30yr fixed rate for flawless scenarios. 4.25% is starting to fade from view at this point, and 4.0% wouldn't be out of the question if we see just a bit more improvement (though it has a ways to go before challenging 4.125% in terms of prevalence.”
Blue Home Loans explains that something borrowers should keep in mind about the current mortgage rate levels is that rates have been stuck in a very narrow range for most of the year. So, while it does seem impressive that rates are at their lowest levels in two months, it is also noteworthy that rates really have not been that much higher within the same time frame. That being said, whenever rates are near the lowest they have been the whole year, it is never a bad idea to lock them in. Those who are near to closing on their loans should definitely consider doing this, while those who have more time on their side might wish to float, as there is some potential for rates to go even lower. Those who are just starting their loan process can lock in on application or also choose to wait.
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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