San Diego, CA (PRWEB) September 01, 2014
Markets will be back open for business tomorrow, coming back from a long weekend, and those who have been keeping an eye out for good mortgage rate lock opportunities are probably wondering what they should expect this coming week. So what will mortgage rates do after the long weekend? 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.
Taking a look at how things stood at the end of last week can help borrowers to better judge where rates might head this coming week. An August 29th report from Mortgage News Daily gives further insight into last week’s closing scenario for bond markets/mortgage interest rates. It says, “Overnight trading was uneventful for bond markets and made for a just slightly weaker open for both Treasuries and MBS. Economic data was completely and utterly ignored. It wasn’t until headlines out of the UK concerning a ‘severe’ terrorism alert sent UK bond yields sharply lower that US bond markets finally found some motivation to get moving.”
That same article continues, saying, “From there, liquidity waned severely, leaving the market open to any significant month-end trade flows. In other words, if there were to be even a normal amount of month-end trading around the 3pm Treasury close, it would have an inordinate impact considering it would comprise such a comparatively large piece of the action. That’s exactly what happened as tradeflows began picking up at 2:59pm…MBS fell from 103-02 to 102-29 and stuck a 10 point landing–making it all the more clear that we were dealing with a brief exodus of certain trading positions and a clear line in the sand where the other positions remained. Same story for Treasuries. That’s the way month-end goes sometimes, and fortunately, lenders had been stingy enough this morning that the volatility didn’t bring on any significant reprice risk.”
Blue Home Loans explains that, on average, mortgage rates were unchanged from one day to the next last Friday. However, had it not been for month-end tradeflows, there is a chance that rates might have improved. This could still happen tomorrow, as mortgage-backed securities (MBS) were actually improved while mortgage rates stayed the same, meaning that there could be some room for positive reprices. Added to that is the fact that global events continue to be some of the largest rate indicators, trumping even domestic economic data in most cases. This situation will likely continue weigh on US mortgage rates in the week ahead.
While rates could get lower, there is also a big chance that they will be the unchanged over the weekend and, of course, there is always the chance that they could be higher. Those who are looking for the best rates will just need to keep an eye on the situation to see what actually happens. Those who do not immediately lock in their rates will want to be sure that they can depend on their loan officer to keep them informed of any situations where locking would be favorable, or the best option to avoid higher rates.
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 states,
“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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