San Diego, CA (PRWEB) August 18, 2013
Blue Loan Services is a full services mortgage company that has been helping residents of California to find the best loan products and home loan rates for many years. The company, headed by the father and son team Robert and Brandon Blue, has been dedicated to serving its customers with honesty, integrity and competence. The Blue Loan Services team of mortgage professionals operates with the goal to provide home loans to its clients while providing them with the lowest interest rates and closing costs possible. Now, with CA mortgage rates rising, Blue Loan Services reports on what home loan borrowers should be doing to ensure they get the best rates on their loans.
The drastic mortgage rate increases that are affecting California and the rest of the nation are the result of a comment made last June by Benjamin Bernanke, the chairmen of the Federal Reserve, which implied that if the economy continues to make steady progress the Fed would start to taper off their asset purchases which have been keeping interest rates low to encourage consumer spending. This announcement was followed by one of the fastest increases in mortgage rates in history, made even more upsetting since home loan rates were previously near record lows. The Fed clarified their statement to make it clear that they would only start to drop off their purchases if the economy improved sufficiently.
However, even though interest rates had been stabilizing, new economic data is driving rates upward once again. With reports showing lukewarm or even positive changes in the economy, many are wary that the economy is not weak enough for the Fed to hold off their proposed date of downsizing their bonds buying program, which was originally suggested would be on September 18th. A news article that was posted on Mortgage News Daily this August 16th says of the recent rate hike:
“Mortgage rates rose sharply again today, with best-execution up to 4.75 in most cases, after another round of economic data failed to convince markets that the Fed would reconsider their probable September 18th announcement of a reduction in asset purchases. Much of the interest rate spike of the past 3 months has been in anticipation of so-called "tapering," and the burden of proof is currently on the various scheduled economic reports to suggest the economy is weak enough that the Fed should reconsider. So far, there hasn't been such a report, and in fact, the balance of this week's data was slightly positive.”
So what can California mortgage borrowers do in this situation? Blue Loan Services advises their clients to act now to lock in the current rates before they increase further, as most experts are predicting will likely continue happening at a quick pace. Finding the lowest rates for a home purchase or refinance can help borrowers to benefit from savings of thousands or even hundreds of thousands of dollars, so taking time to compare rates should not be ignored even when borrowers are advised to move fast.
Blue Loan Services can help California borrowers to both find the best rates for their specific mortgage scenario and process the loan application quickly so that they can lock in their rates before the market sees a further rise in rates. Those who would like to make use of Blue Loan Services’ online live rate finding tool, as well as their calculators and comparison features, and get help processing their loan in professional and timely manner, can visit their website by clicking here or calling 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.
CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #938365