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California mortgage company, Blue Home Loans, Inc., comments on the current mortgage rates trends and offers advice for those who are seeking the best home loans.
San Diego, CA (PRWEB) July 09, 2014
The Fed minutes were released today, and at first it seemed that there would be some more volatility in mortgage markets, as the headlines mentioned moving the cut off for the taper to October from December. However, a hidden gem in these FOMC minutes caused a small rally in mortgage rates instead. 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 July 9th report from Mortgage News Daily gives some insight into todays market reaction to the Fed Minutes. It says, The hesitation immediately following the release is most likely attributable to the QE termination timing discussion where October looks increasingly likely compared to December. But as market participants dug deeper into the text of the Minutes (beyond the headlines), they saw a SIGNIFICANT discussion on the timing of the end of reinvestments. This is the bond-buying that the Fed does with the proceeds from it's portfolio.
The same article further explains, Last year, the party line was that reinvestments would stop before the rate hike. A few Fed speakers grew more vocal this year in saying the Fed shouldn't be so quick to end reinvestments. The discussion was important enough to markets that it was the most likely market-mover at the last FOMC Minutes release as well, but in the opposite direction (because markets were expecting to see a more thorough discussion--much like today's). When that discussion instead came today, we got the rally that was priced-in back in May (seriously... it was the same 4+ basis point move then and now). Why is this reinvestment business so important? Quite simply because this will be the Fed's "bond buying" between the end of QE and whenever reinvestments cease. This is running at $16 billion per month currently, which is still a majority of new TBA production.
Blue Home Loans explains that those who are trying to decide whether to lock or to float should consider that rates have gone down these last few days, albeit just slightly, and there is a chance this rally could continue. Because rates are still near the top of the range, there is room for them to get a bit lower before they start going back up again. For this reason, those who have the tolerance for the risk should consider floating, but should also keep a close eye on the markets and be ready to lock at a moments notice. Those with shorter lock periods might consider locking in todays home loan rates, because while they are at the top of the current range, they are still near the lowest levels of the year, and if rates go up even temporarily they risk missing out on this.
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 todays 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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