San Diego, CA (PRWEB) March 11, 2015
After reaching lower levels than were expected this January, mortgage rates did a quick turnaround and started climbing higher in February and the first week of March. However, it appears that rates are starting to finally make a good push lower with today marking the third day of improvements for CA mortgage rates along with national averages. California full-service mortgage company, Blue Home Loans, Inc., has been helping clients to gain the maximum amount of savings on their home loans for many years and now takes a look at the recent activity in mortgage rate levels and gives some advice for those who have home loan plans for the near future.
The California mortgage company takes a look at the report from real estate news website, Mortgage News Daily, posted this March 11th, 2015, which says “Mortgage rates continued lower at a steady pace for most lenders today. The week continues to be slow in terms of domestic events and data, but it has been active in terms of Europe's reaction to the start of European quantitative easing. Most notably, European bond yields and the Euro itself have taken a sharp turn lower. Both of those markets tend to correlate with US interest rates, which have benefited only modestly from this week's movement in Europe. That said, there's no way to know where rates would be going this week if nothing was happening in Europe. Perhaps they'd be pushing higher (indeed that seemed like a real risk last Friday afternoon). In that sense, the moderate improvement is warmly welcomed.”
Blue Home Loans explains that European concerns have been a major influence on domestic rates, especially within the past year or so. This would appear to be the reason why rates stayed relatively low and even reached below 4.0% when last year many experts predicted rates would rise to over 5.0%. However, with the domestic economy improving and the last few jobs reports showing better than expected numbers, traders have had to take into account the fact that the Fed will likely raise their rates soon. So, while the situation in Europe is great for U.S. rates, mortgage borrowers should also be reminded that it does not totally negate domestic data and events.
The MND article goes on to say, “One of today's domestic events did coincide with improvement, and that was the afternoon's 10yr Treasury auction. While mortgage rates are based most directly on mortgage-backed-securities (MBS), movements in Treasuries correlate almost perfectly, though by varying magnitudes. As such, a sharper move lower in 10yr yields after the auction translated into a slightly less sharp--but still strong--improvement in MBS. As such, several lenders released improved rate sheets in the afternoon. We're now firmly back to 3.875% as the most prevalent conventional 30yr fixed quote for top tier scenarios. Some lenders are still at 4.0% and a scant few are at 3.75%. Most borrowers would be quoted the same rate today as yesterday, and in those cases, the improvement would be seen in the form of lower closing costs.”
These improvements, however small, are good news for those who are in the market for a new home loan and those who are ready to apply will need to seriously weigh their options when it comes to locking on application or floating their rate in hopes of further improvements. California borrowers who wish to avail of the lowest California mortgage rates can rely on the team of mortgage professionals at Blue Home Loans to help them find the right loan product for their needs and keep them informed of the best time to lock in a great rate that could help save thousands of dollars in mortgage payments. Co-owner of Blue Home Loans, Brandon Blue, says,
“I love the personal satisfaction that I receive when I am able to save my clients both time and money--getting them the best deal I possibly can on their home loan. Whether you are looking to purchase your dream home, or want to save money on your existing home, feel free to give me a friendly phone call. I promise that you will not be given some cheesy sales pitch, and that I will listen to your mortgage needs without utilizing any high pressure sales tactics.”
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