San Diego, CA (PRWEB) May 10, 2014
Mortgage rates finally saw some reversal yesterday, after more than a week of almost constant slight improvements. This week has seen some great opportunities for mortgage borrowers to lock in rates that have not been seen for a while. The question now is – will rates be able to keep up the improvement next week, or does the slight increase signal the start of a new upward trend? Blue Home Loans, Inc., a California-based full service mortgage company that has been helping CA residents find the best mortgage rates and loans available for many years, comments on the current situation with mortgage rates and offers some advice for those who are not sure how to proceed with their home loan plans.
A May 9th article from Mortgage News Daily comments on the current situation with mortgage-backed securities (MBS), the bonds that most directly influence mortgage rates movement. This recent report says,
“The focus of the week for MBS and rates should be on the fact that we made it to levels not seen since the end of October 2013. With 6 out of the last 7 days taking rates into better territory--not to mention with the utter defiance of last week's big NFP beat--it's only fair to expect a modest correction to big, strong winning streaks. That's just what we had today as Fannie 3.5s and 4.0s are only off 6 and 3/32nds respectively heading into the last few hours. Treasuries were slightly higher in yield, but ended up closing under a short term technical level at 2.625. There were no significant market movers in play today, leaving markets to act purely based on tradeflows and technicals--an ideal opportunity for the type of correction we saw. The only risk is that today is also consistent with a broader correction to April's strength. That could make next week challenging, especially if the economic data is stronger.”
As the above quote notes, stronger data next week could cause mortgage rates to rise, which would be expected given their long winning streak over the past week. This might not necessarily happen, and recent mortgage rate trends have often bucked conventional expectations by remaining low, or even moving lower, during times when it seems that they should have gone up. Blue Home Loans explains that there is never any way to tell for sure how mortgage rates will move in the future, but experts can always make an educated guess. Because of this, however, the mortgage company often advises borrowers to lock in whenever rates are in lower territory, especially when the risk of rates heading back up is strong, as it could be in the coming week. Mortgage rates are still quite near to the lowest levels that have been seen this past week, so locking in as soon as possible could make sense for many borrowers.
Those who are near to closing on their home loans should especially consider locking in the currently low mortgage rates available, but even those who have not started their loan process yet can benefit from this advice by locking in on application, preferably with a lender that allows for renegotiation. This will allow them to keep current low rates in reserve while keeping their options open in case something big happens and rates dip lower before their loan closes. Blue Home Loans can help those 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 thousands of dollars 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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