Average California Mortgage Rate Levels Just Slightly Lower At The Start Of Volatile Week

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Blue Home Loans, Inc. comments on the recent mortgage rate trends reported by Mortgage News Daily and offers some insight for California homeowners and prospective home loan borrowers.

Mortgage rates across the nation showed a lot of variation depending on the lender yesterday, and as the first day of this potentially very volatile week ended, the total effect was that national average mortgage interest rates were not changed much since last week’s latest levels and California mortgage rate levels were just slightly lower on average. 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 mortgage rate trends 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 January 20, 2015, which says, “Mortgage rates were truly mixed today, with some lenders improving while others moved higher. More than a few were unchanged or close to it. All this despite the fact that broader interest rate benchmarks like 10yr US Treasuries were unequivocally in stronger territory. While not common, these divergences between Treasuries and mortgage rates can happen for several reasons, and we're seeing the two most common reasons today.”

The MND article cites the sheer level of improvement for mortgage rates so far in 2015 and lenders having to account for high volatility as the chief causes for mortgage rates moving counter-intuitively to the rest of the bond market in many cases yesterday. The article also explains, “As far as root causes for the volatility are concerned, Thursday's announcement from the European Central Bank is the leading candidate. Risk and reward are elevated when it comes to locking and floating, but the volatility is limiting the reward potential in the short term.”

Blue Home Loans explains that while this week will be a slow one for domestic data, European market considerations are taking center stage and will definitely have an impact on domestic mortgage rates. Those who are wary of this type of market volatility will want to lock in their mortgage rates before the announcement tomorrow. Depending on this morning’s rate sheets, this might be a very good plan of action since CA mortgage rates are still near 1.5 year lows and if they drop further after the ECB announcement, borrowers can always renegotiate.

Risk takers who want to wait and see what will happen after the announcement should be very cautious. The risk could definitely pay off with lower mortgage interest rates, but the possibility of a bounce higher is equally probable. In either case, potential borrowers who have not yet applied for a mortgage loan will want to do so soon so that they will have the best chance of locking in the lowest possible mortgage rates while they are available.

California borrowers who want to be sure that they benefit from the best California mortgage rates in 2015 will find that they can count on the mortgage experts at Blue Home Loans, Inc. to find them the best rates and mortgage programs for their unique financial situation and home loan goals. 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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Brandon Blue
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