Mortgage Rates Slightly Higher Following News Of Potential Ceasefire In Ukraine

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California mortgage company, Blue Home Loans, Inc., comments on the current mortgage rates trends and offers advice for those who are seeking the best home loans.

News of a potential ceasefire between Ukraine and pro-Russia separatists early this morning pushed mortgage rates slightly higher today. According to Mortgage News Daily, while there was quite a bit of volatility early in the morning, things started to bounce back by the time lenders issued their rate sheets for the day, and thus rates were not as adversely affected as they might have otherwise been.

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.

A September 3rd report from Mortgage News Daily offers further insight into today’s rate movements. It says, “Mortgage rates started the day heading higher after overnight news of a potential ceasefire in Ukraine caused investors to quickly sell safe-haven assets. The mortgage-backed-securities (MBS) that dictate mortgage rates fall into this 'safe-haven' category along with US Treasuries. When investors are selling MBS, prices move lower and rates move higher.

"As the day progressed, however, financial markets steadily backed away from the overnight momentum. Stocks weakened and bond market improved. There is an hour or two in the morning where MBS are trading before most lenders come out with rates for the day. Much of the overnight weakness was erased by then, allowing lenders to price fairly close to yesterday's latest levels. As markets improved into the afternoon, several lenders released improved rate sheets, bringing the average even closer to 'unchanged' on the day.”

According to Blue Home Loans, while it looks like rates have dodged a bullet today, there could be more volatility just on the horizon. The California mortgage company explains that rates will likely see some stronger movement following tomorrow’s meetings and press conferences of the European Central Bank.

The MND article goes on to say, “Tomorrow ushers in more volatility as one of the key near term events takes place. Much of the pervasive strength in mortgage rates is a direct result of European financial markets. Specifically, most investors see the European Central Bank (ECB) embarking on a sort of quantitative easing program bearing some similarities to 'QE' in the US. The consensus is that this would happen by early 2015, but tomorrow brings one of the monthly meetings and press conferences from the ECB. This could be used as a venue to further the discussion on how a QE program might take shape. To whatever extent that discussion deviates from the market's expectations, we could see bigger movement in rates, for better or worse.”

Blue Home Loans suggests that borrowers who are on a short lock period right now and need to lock within the week should consider doing so as soon as they can to avoid any potential swings higher for mortgage rates. Those with more time on their hands may wish to wait things out and see how mortgage interest rates fare after tomorrow’s round of meetings. This Friday also brings the jobs report, which is another big potential mover for rates and as such borrowers who choose to float should keep an eye out for it.

The Blue Home Loans team also notes that for those who are just starting out with their loan process, applying for a loan and locking on application is always an option, but borrowers may wish to do this with a lender that allows for renegotiation, in case rates do drop lower before they close on their loan. Those who do not immediately lock in their rates will want to be sure that they can depend on their loan officer to keep them informed of any situations where locking would be favorable, or the best option to avoid higher rates.

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 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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