San Diego, CA (PRWEB) August 13, 2014
Yesterday’s mortgage rates were more or less unchanged from the previous days’ quoted rates, which are still near the lows of the recent range. This is an unusual circumstance, as the original motivation to move lower came from unexpected geopolitical factors, and this would usually result in more dynamic movement for mortgage interest rates over the following days. Instead, rates have been more or less unchanged, with only very slight increases since the beginning of this week. 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.
An August 12th report from Mortgage News Daily gives some further insight into the current mortgage rates picture. It says, “Mortgage rates were unchanged for the most part today. Of the lenders who had measurable changes from yesterday’s latest offerings, slightly more of them moved higher in rate, but the general lack of movement can’t be overemphasized. To reiterate yesterday’s assessment, this is an uncommon occurrence following a move to recent lows fueled by geopolitical risk. In other words, when unexpected headlines cause rapid movements in financial markets, rates don’t normally just freeze at the lows for days on end.”
The same article goes on to explain, “Not only have things been stagnant in the short term, but the past few months have been exceptionally flat as well. In fact, it’s not unfair to say that after bottoming out in late May, mortgage rates haven’t moved much at all. Only two rates have been contenders for top-tier conforming 30yr fixed scenarios during that time: 4.125 and 4.25%. Whichever rate you were quoted yesterday is almost certainly the same rate you’d be quoted today. The only differences from one day to the next are the very slight changes in closing costs. This is a factor of mortgage lenders typically offering rates in .125% increments. There is seldom enough movement to move rates by an entire .125%. The costs associated with those rates are like ‘fine-tuning’ adjustments that allow lenders to keep pace with the always-moving bond markets that serve as the basis for rate sheet movement.”
Blue Home Loans explains that the recent phenomenon of rates stuck near the bottom of the range for days on end can increase the likelihood of rates bouncing higher soon. Of course, there is also the chance that some influence could push rates slightly lower, or just keep them where they are at, at the bottom of the range. However, the risk is much greater that rates will move up. Because of this, those who are trying to decide whether to lock or float their loans should carefully consider their own tolerance for risk, and also how much time they have left in their lock period.
Those with shorter lock periods should definitely think about locking in, while those with more time have a little more leeway, but should also consider the risk vs. reward of floating. For those who are just starting with their loan applications, it is also important to find the right loan program. This will save borrowers the most amount of money on their home loans whether they lock in on application or decide to do so later.
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 money 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.
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