Mortgage Rate Trends Push Even Higher
San Diego, CA (PRWEB) December 04, 2013 -- LoanLove.com is a borrower advice website that helps to provide in-depth and detailed information in a way that even a first time home loan borrower will be able to understand. With connections to the top rated industry professionals, valuable resources and first class knowledge the website is one of the most trusted destinations for current news and expert loan advice. Now, with the recent mortgage rate trends pushing ever upward, and no real indication yet of where they will move after this week’s run of economic data, there are undoubtedly many home loan borrowers who are wondering how they should continue with their home purchase or refinance plans.
As a December 4th report from Mortgage News Daily explains: “Mortgage rates moved higher again today, reaching levels not seen since September 17th--the day before the Fed Announced "no change" to QE asset purchases. The mortgage-backed-securities (MBS) that most directly affect rates stood ready to move either direction based on this morning's economic data. The most important report on the calendar was the ADP Employment Report, widely regarded as the best early indicator of the all-important Employment Situation Report due out this Friday. ADP's numbers were stronger than expected, causing markets to adjust their expectations for Friday. In this case, that meant selling MBS, which causes lower prices and higher rates.”
Loan Love explains that while the higher rates may discourage many borrowers from finding new home loans or locking in the current rates, it might actually be better to settle for these current rates than to wait for rates to get lower. This is because any strong data in the upcoming reports could cause rates to rise rapidly as many investors would speculate that the Fed would see this strength as a reason to start tapering off their stimulus purchases when they meet this December 18th.
As the above quoted article continues: “The batch of economic data tomorrow isn't nearly as big of a potential market mover as Friday's employment report, but it may still provide some motivation. Friday is a potential game-changer, however, in that a strong result will lead many investors to believe the Fed may announce a reduction in asset purchases on December 18th. This would almost certainly push rates significantly higher, though markets will accomplish quite a bit of such a move if the data is strong enough on Friday.”
Because of this, Loan Love advises those who are set on closing a loan anytime soon to go ahead and lock in the current rates for their loan or start their application for a loan as soon as possible and lock in the rate on application. The borrower advice website has a number of tools that can help those seeking the best loan products and rates to find them quickly, such as the live rate quote tool which is provided along with their mortgage rate comparison guide.
For more information on finding the best loan rates and products, please visit LoanLove.com.
Kevin Blue, Loan Love, http://loanlove.com, +1 949-292-8401, [email protected]
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