Mortgage rates ended this week by moving slightly lower yet again, but still have not broken lower than the narrow range that they have been stuck in for quite some time – a lack of movement which is mirrored in bond markets which directly influence mortgage interest rates.
That same article continues, "Additionally, 2.57 and 2.60--the two ways to look at the lower end of the range--are the same two levels that have served as the lower end of the range for almost all of 2014. Yields broke lower for only 2 weeks in the second half of May and have since returned, and with a vengeance at that! Today's trading did absolutely nothing to change that. There were no significant events and activity was light. While early session weakness threatened to bring yields to the 2.66 barrier, markets quickly improved and haven't looked back for the rest of the day. 10's are now drifting out just over 2.60 and MBS have fared even better--currently up 6/32nds at 102-12. Until something new happens, we have no momentum and no trend for now."
What does this mean for mortgage borrowers? Blue Home Loans explains that mortgage rates will usually stay closely in line with changes in bond markets, especially mortgage-backed securities (MBS). Bond markets and mortgage rates are inversely related, so higher bond prices usually results in lower mortgage rates. Recently rates have been creeping downwards, and ended this week at averages of around 4.25%. The
This advice would especially be applicable to those who are near to closing on their loans, since even a temporary rise in rates could mean losing out on some of the gains seen over the past week. However, 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 rates in reserve while keeping their options open in case rates dip lower before their loan closes.
Blue Home Loans can help
For more information on how Blue Home Loans can help
Read the full story at http://www.prweb.com/releases/blue-home-loans/mortgage-interest-rates/prweb11965131.htm
Most Popular Stories
- Criminal Investigation Opened Into James Foley's Death
- McDonald's Names Another U.S. President
- The Hip New Career? Farming
- Sahara Casino Rises Anew as SLS Las Vegas
- U.S. Supporters of Islamic State Get Close Scrutiny
- Student Startup Develops Date-rape Detector
- Job Market Shifts Complicate Yellen's Rate Decision
- Dems Losing Fear of Obamacare
- Chinese Coal Gas Boom Poses Climate Risks
- Deere Announces New Round of Layoffs