San Diego, CA (PRWEB) August 22, 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. The company also reports on the latest financial and real estate trends to keep their clientele up to breast and ensure that they are able to make the right decisions when it comes to their home loans. Now, with the lowest mortgage rates CA has seen well in the past and many expecting even higher interest rates in the very near future, Blue Loan Services reports on what is causing the increase and how home buyers and owners can work their plans around the higher rates.
Blue Loan Services explains that the sharp increase in rates is a little more complex than the normal yo-yo affect of rising and falling rates. With the lowest mortgage interest rates on record presenting themselves starting in November last year and more record lows earlier this year, it was inevitable that rates would eventually start to rise again. However, the sharp increases that started this June can be pinned down to a separate incident. On June 19th a statement was made by Federal Reserve chairman Ben Bernanke which hinted at a possible winding down of the Fed’s bonds buying program. These asset purchases have been tamping down long term interest rates to encourage consumer spending and help with the recovery of the economy. The statement suggested that the economy was improving enough that the Fed was considering tapering off their purchases, even as soon as September 18th.
This comment sent the financial world into a frenzy. Rates rose almost immediately and those who had been planning to refinance their mortgages or purchase a new home were left with the fact that they would not be able to lock in the much lower rates that they had originally been looking at. Things had stabilized since then, and rates and home prices were steady for the most part, but this changed when recent economic reports were released. Many feel that the data on these reports do not show that the economy is doing poorly enough for the Fed to reconsider delaying the tapering off of their program, and this speculation has again caused interest rates to rise rapidly.
A report from Mortgage News Daily posted August 19th explains: “As we discussed on Friday, 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.”
With even higher rates on the horizon, many are wondering how they should proceed with their mortgage refinance or purchase plans. Blue Loan Services advises those who have been on the fence about purchasing or refinancing to act as soon as possible to lock in the current rates. Rates are only expected to rise, so locking immediately is usually the best course of action for those who still want to get a good deal that could save them hundreds of thousands of dollars over the life of their loans. Blue Loan Services is more than able to help prospective home loan borrowers and those who wish to refinance to find the best possible rates and lock them in quickly so that they will be able to save time and money.
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