San Diego, CA (PRWEB) February 22, 2014
Rates have been rising for California home loan borrowers over the last week, despite weak economic data, which would normally push mortgage interest rates lower. Now, even as bonds markets are gaining strength, rates have slightly risen yet again. Blue Loan Services, a full service mortgage company that has been serving California with the lowest mortgage rates and the best loan products for many years, comments on the current state of affairs and gives some advice for those who are waiting to find the right mortgage rate to lock in.
As a February 21st report from Mortgage News Daily states, “Mortgage rates moved slightly higher today despite improvements in underlying markets into the afternoon. Bond markets including MBS (the 'mortgage-backed-securities' that most directly affect mortgage rates) were in weaker shape this morning, resulting in higher rates on the initial round of rate sheets. As market conditions improved for bond markets into the afternoon, many lenders released positively revised rate sheets, but in most cases the improvements weren't enough to get back to yesterday's latest levels. On average, rates rose 0.02% when adjusted for changes in closing cost and 4.5% remains the most prevalently quoted 30yr fixed rate for the very best borrower scenarios (best-execution).”
The same article explains, “To reiterate this week's recurring theme, bond markets have been struggling to decide on the safest, most useful form of motivation in this uncommon environment. The uncommonness stems from the harsher-than-normal winter weather in much of the country and the fact that financial markets have at least partially accepted it as justification for recently weak economic data.”
Blue Loan Services explains that while the weather may not be fully responsible for the weak economic reports that have been released, there is no way to truly separate the weather-related distortions from reality. The weather also serves to confuse things, since while weak data will be blamed on snowstorms and the like, and be somewhat dismissed, strong data will be seen to have even more significance. So, in a situation like this where rates rise even when data is weak, they would be expected to rise a whole lot higher if data was strong. Because of this, it can be risky for borrowers to float their loan rates in hopes that rates start to go down again.
Mortgage interest rates are expected to increase steadily in 2014, so any dips should be seen as a good chance to lock in a favorable loan rate rather than a turn around in rate trends which will continue indefinitely. Because of this, Blue Loan Services’ advice for borrowers is that it’s always safer to lock in a loan rate. If borrowers do this, and rates do head down, they will often have the option to renegotiate with their lender. However, if rates do go up, they will have no way to get back to the lower rates of the past if they have not locked in.
Blue Loan Services can help those who wish to lock in today’s low mortgage rates to find the best possible loans for their situation and work quickly to get approved so that they can avoid higher rates down the line. Their fast online loan application and documentation portal makes it simple for clients to submit their application and keep track of their loan’s progress. With a reputation for fast, reliable and courteous service, the company’s team of experienced loan officers can be especially useful during this time of uncertainty.
For more information on how Blue Loan Services can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit BlueLoanServices.com or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.
CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #938365