San Diego, CA (PRWEB) September 21, 2014
Last week was a tough one for mortgage borrowers who were looking for a good rate, as mortgage rates climbed higher and higher surrounding the scheduled FOMC events of last week, eventually rising to 4 month highs on Thursday. However, the last day of the week brought a little hope, as both MBS and treasuries moved back in line with the trading levels seen at the close of the business day on Tuesday that week, according to mortgage news and advice website, Mortgage News Daily. But will last Friday’s bond market rally continue into the new week? Blue Home Loans, Inc., a California-based full-service mortgage company, headed by father and son team Robert and Brandon Blue, takes a look at the events of last week and offers some insight into what borrowers might expect from mortgage rates in the week ahead.
Last Friday’s report from Mortgage News Daily can give borrowers a better idea of how mortgage markets will look going into the new week. The September 19th report states, “Both MBS and Treasuries are back in line with trading levels from the close of business on Tuesday. Today's gains have been moderate during the domestic session, but border on extreme if we count the overnight session. For example, 10yr yields were as high as 2.655 and are now down into the 2.5's. That's not the kind of movement we typically see on a day without any significant events to motivate trade. So what's motivating trade then? As I said in Wednesday's commentary after the Fed announcement, there have been other factors in play that could easily outweigh the anticlimactic response to the Fed. Several of these factors are now conspiring to give us a boost.”
Some of the factors cited as possibly having a hand in last Friday’s rally by the above quoted article include: spillover from European markets; corporate bond market hedging tradeflows; the upcoming “quarter-end” trading environment; and the technical landscape. Blue Home Loans, Inc. notes that as this week rolls around, it will become more clear which factors are most influencing bond markets and consequently mortgage interest rates.
For those wondering where mortgage rates will head this week, the California mortgage company suggests that there is a good chance that rates will improve slightly going into the new week. The bond market rally was small, but it might have been enough of a push for many lenders to offer positive reprices, especially if things continue to improve or even just fail to worsen for bond markets. That being said, there is never any real guarantee when it comes to mortgage rate predictions. Because there are so many factors that can sway mortgage rate movement, those who are seeking a good rate should be prepared for any quick changes in mortgage rates and be ready to lock in if rates look good to them or if rates threaten to rise above their acceptable mortgage rate range.
If tomorrow brings improved lender rate sheets, those who are near to closing may wish to lock in their rates immediately, as there is no way to tell how rates will look later in the week. Those with more time on their hands, and who can afford some risk, may wish to wait and see where rates will head from here. Of course, they should also use caution and lock in if they see that rates are getting too high to continue to risk floating. The Blue Home Loans team is dedicated to keeping their clients informed of their best loan options and rate lock opportunities, so that they can benefit from the maximum amount of savings on their home purchase or refinance loans. By offering the best loan programs, loan rates, and closing costs available, the California mortgage company has been able to help CA residents realize their home ownership dreams for many years. The company’s 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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