San Diego, CA (PRWEB) May 15, 2014
Those who have been keeping track of mortgage rates predictions versus actual mortgage rates movement can easily see that mortgage interest rates have not been moving in the way most people have expected them to move. This turns out to be great news for home loan borrowers, since most experts predicted a steady rise in rates for 2014. Instead, rates have headed slightly up – but then back down again slightly lower – several times this year. The beginning of this week looked like it would be a farewell to the six-month lows that were enjoyed the week before. But yesterday saw the lowest rates of 2014 and today rates dropped even lower than that, with mortgage rates now near 11 month lows. Blue Home Loans, Inc., a California-based full service mortgage company that has been helping CA residents find the best rates and loans available for many years, has been keeping track of these recent mortgage rates trends and now comments on the current situation and offers some advice for those who are not sure how to proceed with their home loan plans.
A May 15th report from Mortgage News Daily gives a brief overview of the current situation. It says, "Mortgage rates kept moving lower today as European markets continued to provide an unexpectedly large boost in demand for domestic bond markets. Those markets include MBS, the mortgage-backed-securities that most directly affect mortgage rates, and higher demand pushes prices higher, which in turn makes rates lower. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is now centered on 4.125%. Some borrowers will see the improvements in the form of lower closing costs or higher lender credits. In terms of effective rates, that drop in closing cost equates to a drop of 0.02%. We discussed the importance of yesterday's market movements in that it was the first clear instance of the broader US bond market breaking its contained 2014 range. For instance, 10yr Treasury yields hadn't been below 2.57 at all this year, but fell to 2.525 at their lowest levels yesterday, and moved lower to 2.473 today. This consecutive move into even lower levels is consistent with the "range break" theme that we referred to yesterday as a positive development in the bigger picture."
Blue Home Loans explains that this new trend in rates has potential to bring rates even lower with time. However, there is never any sure way to predict exactly what will happen to mortgage rates, as there are so many factors and variables that can motivate rates to go up or down. For the time being though, mortgage borrowers have to decide whether to take the low rates being offered now, or wait to see if they will go down any further. The California mortgage company advises that those who are near to closing should definitely consider locking in these new low rates as there is always a risk that mortgage rates could bounce higher. Even those who have not started their loan process yet can benefit from this advice by locking in on application with a lender that allows for renegotiation. This will allow them to keep current low home loan rates in reserve while keeping their options open in case rates dip lower before their loan closes.
Blue Home Loans can help California borrowers who are looking for the best rates, lenders and loan programs to find exactly what they need so that they can take advantage of today's lowest mortgage rates and save thousands of dollars on their loans. As the Blue Home Loans website says, "We make finding a loan simple because we have virtually every loan program available, regardless of the type of mortgage you are looking for. Whether you are dealing with bad credit, foreclosure, bankruptcy, or low credit scores, we can help you. It only takes us five minutes to find the right program that fits your needs."
For more information on how Blue Home Loans can help California home loan borrowers get approved for their home purchase loan or refinance quickly, please visit BlueHomeLoans.com or call 1-888-929-BLUE (2583) to speak with an experienced mortgage professional.
California Bureau of Real Estate -- BRE #01938557 NMLS #1162386
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