Mortgage Rates Hit Highest Levels In A Month

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Blue Home Loans, Inc. comments on the current state of mortgage rates and offers advice to California borrowers who are seeking to save money on their home loans.

Mortgage rates reached 1 month highs today, giving 4.25% equal footing with the longstanding most prevalently quoted rate for top-tier borrowers which was 4.125% for 30 year fixed rate mortgages, according to Mortgage News Daily. Blue Home Loans, Inc., a California full-service mortgage company headed by father and son team, Robert and Brandon Blue, has been helping CA homeowners and buyers to find the best rates for their home loans for many years, and continues to offer advice on the current rate trends so that borrowers can save money on their homes.

A September 10th report from Mortgage News Daily explains, “Mortgage rates continued moving higher at a fairly quick pace today. Some borrowers may now start to see rate quotes moving up an eighth of a point. This is significant because most of the recent movement in the rate market has only affected the closing cost side of the equation. This can be thought of as a fine-tuning adjustment whereas actual changes in rate are a bigger deal. For instance, closing costs change daily and sometimes multiple times during the day. The interest rate part of rate quotes generally hasn't changed since early June for most borrowers. That means 4.125% has been the most prevalently-quoted rate for top-tier borrowers during that time. During the weaker moments, 4.25% has occasionally been a close second, but today's weakness brings it to roughly equal footing with 4.125%. Any rise in rates tomorrow would tip the scales in its favor.”

The same article continues, “So obviously we need to know what rates are going to do tomorrow! Unfortunately, there's never any way to be sure. What we do know is that bond markets are currently anxious about next week's Fed announcement. That happens on Wednesday, so rates are operating at a disadvantage until then. Keep in mind though, that there are always multiple factors in play when it comes to market movement. There is also very likely a limit on how much rates will rise between now and next Wednesday. The takeaway is that we could see a day or two of recovery between now and then, but it's probably not worth the risk to try to time that correctly.”

Blue Home Loans explains that since there is no way to tell if rates will go back down soon or if this is the start of a more sustained push higher, it would be wise for most who are undergoing the loan process to lock in their rates at the soonest opportunity. This is especially pertinent advice for those who are near to closing and may not have time to recover if rates do head sharply upward. Even those with more time on their hands should carefully weigh the risk vs. reward of floating and lock their rates if they are not willing to be stuck with a higher rate if things continue in the current trend.

Those who are just starting with their loan applications have the option to lock in their rate when they apply or float their rate in hopes that rates will go down before their lock period ends. Those who lock on application can keep their options open by choosing a lender that allows for renegotiation, and those who float should ensure that their loan officer is willing to inform them of any opportunities to lock in a good rate or when locking would be the best option to avoid further losses.

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 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.

California Bureau of Real Estate -- BRE #01938557 NMLS #1162386

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