San Diego, CA (PRWEB) August 26, 2013
Blue Loan Services is a full service 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 the mortgage rate forecast not looking very hopeful, Blue Loan Services offers advice to current and potential homeowners on what is causing the rate increases and what they can do to ensure they still get the best home loan rates despite predictions of even higher increases in the future.
Blue Loan Services explains that the recent mortgage rate increases, which started mid-June, are actually being caused by speculation about the Federal Reserve’s plans to taper off their mortgage-back-securities (MBS) purchases due to the apparent growth and recovery of the economy. The panic that followed the initial statement from the Fed’s chairman, Ben Bernanke, last June is what caused the sharp increase in rates that took everyone by surprise. However, rates had stabilized since then, as the Fed clarified that it would only move to wind down their asset purchases if the economy showed adequate signs of improvement.
Recently released economic reports have caused rates to increase again, however. While the data from these reports does not show great increases in economic growth, many feel that it also does not show that the economy is weak enough for the Fed to reconsider their plans to taper off their spending on their proposed date of September 18th. This speculation has caused the recent rate increases. An article on Mortgage News Daily posted this August 19th says:
“…markets continue to take a defensive stance against the prospect of the Fed reducing the pace of their asset purchases. As investors withdraw from bond markets, the prices of mortgage-backed-securities (MBS) fall, forcing lenders to offer higher rates. The combination of the Fed asset-buying speculation, seasonal absences among market participants, and debate over the next Fed Chair nomination is creating a very uncertain environment where traders are more apt to trade according the momentum. One analogy is that it's easier to go with the flow of the current than to swim against it.”
Because of these increases, many mortgage borrowers are unsure how they should proceed with their home purchase or refinance plans. Blue Loan Services advises homeowners that:
- Despite the currently higher rates (compared to the record lows that were seen earlier this year) today’s rates are still much lower than what many are expecting they will be in the near future.
- Delaying a purchase or refinance could mean that the borrower has to settle for a higher (potentially much higher) rate, and even the difference of a few points could mean the difference between saving or spending thousands or even hundreds of thousands of dollars over the course of the home loan.
- Looming rate increase should encourage home loan borrowers to lock in their rates as soon as possible, in order avoid these higher rates
- Blue Loan Services can help them to do this with their fast and efficient loan processing system, which has already helped many California homeowners to find the best rates and lock them in quickly.
For more information on how Blue Loan Services can help 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