California FHA Mortgage Rates Take a Hit – Conforming Loans Still In Good Shape

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

Mortgage rates were slightly higher today on average, with California FHA mortgage rates taking a hit after an announcement concerning lower premiums for this type of loan. Mortgage rates for conforming loans fared better, with some lenders even offering improved pricing over yesterday’s lows. 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 2015.

The mortgage company takes a look at the January 7th report from real estate news website, Mortgage News Daily, which states, “Mortgage rates moved slightly higher today, but remained close to the lowest they've been since May 2013. The only day with any lower rates since then, was yesterday. The pull-back was a bit better than random, as we'd just seen our 7th straight day of improvements culminating in the biggest move on the final day. When that happens, it becomes increasingly likely that the next day will send rates back in the other direction. With that in mind, today's rise in rates was fairly modest--much more so than the pull-back seen after the last similar example on October 15th. Conforming 30yr fixed rate quotes for top tier borrowers are still in the 3.625-3.75% range, though 3.75% is much more prevalent.”

The MND article also explains, “The exception today's ground-holding is government loan rates. After today's announcement regarding a reduction in FHA mortgage insurance premiums (MIP), investors shunned the bonds that back those loans. This happened because the drop in MIP suggests current versions of those bonds will have shorter lifespans as borrowers are more enticed to refinance. The shorter the expected life of those bonds, the less they're worth to investors, and they demonstrated that today by offering lower and lower prices. The lower the price of those bonds, the more pressure lenders are under to raise rates, and many did just that. The interesting part is that most of the changes were specifically to the affected programs. In many cases, lenders IMPROVED rates for conforming loans while FHA pricing deteriorated. Unfortunately because FHA and VA loans are backed by the same type of bond, VA took a hit as well, even though it wasn't part of the announcement.”

Blue Home Loans explains that even with the slight pull back today, it is still the second-to-best day for mortgage rates that has been seen for 20 months, with only yesterday topping it. Those who have been planning to apply for a home loan but who have not yet done so would be wise to get things moving as soon as they are able to. This is because these great low rates provide a unique opportunity to save a lot of money on a home, but the opportunity could be a fleeting one. There is still a chance that rates could dip lower over the next few weeks or even months, but there is always an equally good chance that they could get higher with little to no warning. Because of this, those who want to make sure that they are able to avail of the lowest mortgage rates will need to have a loan application in process so that they will be able to lock in at a moment’s notice.

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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