CA Mortgage Rates Show Resilience At 20 Month Lows

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Blue Home Loans, Inc. comments on the recent mortgage rates movement reported by Mortgage News Daily and offers insight for California homeowners and potential home.

National average mortgage rates moved modestly lower today, with CA mortgage rates showing surprising resilience in spite of today’s less than stellar 10yr auction. The small improvement in rates sheets helped bring average rates back to the best levels seen since mid-May 2013. 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 a 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 January 13th report from real estate news website, Mortgage News Daily, which says, “Mortgage rates fell only modestly today, but it was enough for the best rate sheets since mid-May 2013. That's a new 20 month low, on average. The most prevalently-quoted conforming 30yr fixed rate for top tier scenarios is 3.625%, but 3.75% remains quite common. Once again, there were no meaningful events on the economic calendar to motivate market movements. Instead, the bond markets that dictate mortgage rates were simply along for the ride as other sectors underwent more volatility. Like yesterday, this was most noticeable in equities markets (stocks).”

The article goes on to explain that while rates do not always fall when stocks fall, the bigger the movement in one area the more likely it will be that the other area is also affected. This was the case today as the movement in stocks was notable enough that bond markets (which are more directly linked to mortgage rates) could not help but trade sympathetically. The MND article says, “Because of this, bond markets were near their best levels of the day in the afternoon when stocks hit their lows. This resulted in widespread positive reprices from mortgage lenders. As such, the average morning rate sheet wasn't quite as strong as yesterday, but the average afternoon rate sheet is slightly stronger.”

Blue Home Loans explains that much of the incentive for rates to stay low, starting in early 2014, has come from European market considerations. This continues to be the case going into this new year, but it is not something that should be taken for granted. The problem is that as soon as there is a reversal in European markets, rates could be greatly affected. And there is no way to tell when this will happen, only that it will… eventually. For now, those who are looking for the best deals on their home loans should consider applying for their loan as soon as they can and locking in on application or carefully floating if they want to take the risk that rates can go lower before they go higher again.

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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