San Diego, CA (PRWEB) March 04, 2014
Recent unrest in Ukraine has caused investors to seek the “safe haven” of bond markets, causing rates to decrease despite the simultaneous release of economic data which would usually be the deciding factor in mortgage rate trends. This mortgage rates decrease is good news for those who are seeking the best mortgage loan for their home purchase or refinance. Blue Loan Services, a full service California mortgage company that has been providing the lowest rates and best loan products for many years, comments on this current situation and gives some advice for those who are not sure how to best proceed with their home loan plans.
A March 3rd report from Mortgage News Daily states, “As fun as it is to be cynical about the market movers getting the most attention, today's strength in bond markets really was mostly about Ukraine. This was apparent for a few reasons, not the least of which being that a majority of the gains occurred during the overnight session following Ukraine-related headlines. From those opening levels, Treasuries and MBS are only in modestly stronger territory now, and spent most of the afternoon right in line with them. ISM Manufacturing--typically a noticeable market mover--had little impact today, suggesting there were bigger considerations at hand.”
Blue Loan Services explains that Mortgage Backed Securities (MBS) directly affect mortgage rates. Strong bond markets will usually result in lower mortgage interest rates and the reverse is also true – weak bond markets equal higher mortgage interest rates. Because of the situation in Ukraine right now, there has been a shift in demand in investments seen as “safer” such as U.S. Treasuries and Mortgage Backed Securities. This positivity in bond markets is still seen as somewhat tentative, however the fact that the initial strength due to the troubling Ukrainian headlines was not immediately corrected back to the previously weaker levels has resulted in many lenders repricing their rates lower.
At this time it is impossible to tell how things will work out in Ukraine, but while turmoil continues to put pressure on rates to go down, borrowers might want to keep a close eye on mortgage rate trends and either lock in current low rates or float, very carefully, to see if rates will improve even more. The economic data released towards the end of this week will have a greater impact on rates than the ISM Manufacturing report of yesterday, so this is something that “floaters” should watch out for. Blue Loan Services does warn, however, that while floating could result in a better rate for mortgage borrowers, the safest course of action is always to lock in current rates if they fall within an acceptable range for the mortgage borrower.
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