Yesterday mortgage rates finally broke lower than the very narrow range they have been stuck in. Today rates stayed at these new low levels or were just slightly lower, which offers hope that this new move is a definite break from the range.
The same article states, "Today's improvement in bond markets (and consequently, mortgage rates) offers another degree of support for the notion that that rates have broken out of the sideways range that dominated the month of June. For those inclined to lock, it wasn't a bad call yesterday and it still isn't today, if for no other reason than rates are at their best levels of the month and fairly close to the best levels of the past 12 months. Of course there's a chance they could continue lower. If you're inclined to hold out for further improvements, just be ready to lock if markets move against you. Floating will be riskiest after Monday of next week."
Blue Home Loans explains that while these new lower rates are great news for borrowers, it is important to keep vigilant when it comes to floating. Those who do decide to float should keep in mind that rates have gone down or stayed the same over the last ten days, and the longer a trend in mortgage rates is sustained the higher the risk that there will be a "correction" in the opposite direction soon enough. Another factor is that end of the month trading can often lead to a slight increase in rates. Because of this, those who choose to float should do so while staying in close touch with their loan officer who hopefully keeps a vigilant eye on financial markets.
Those who are near to closing on their loans should definitely consider locking in the current mortgage rates, as it is unlikely they will get to see rates this low before they close on their loan - and even if they do, the risk of a higher rate would outweigh the benefit of a fractionally lower rate. Even those who have not yet started their loan process can benefit from today's rates by locking in with a lender that allows for renegotiation. This will allow them to keep these very low mortgage rates in reserve, but will also allow them to keep their options open in case rates drop even lower before their loan closes.
Blue Home Loans can help
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Read the full story at http://www.prweb.com/releases/blue-home-loans/mortgage-rates-california/prweb11980638.htm
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