San Diego, CA (PRWEB) January 08, 2015
Mortgage rates were only slightly higher on average today, with CA home loan rates showing good resilience ahead of the NFP report that is scheduled for tomorrow. NFP Friday’s are usually cause for volatility in bond markets, at the very least to some extent, but today’s modest losses could be a sign rates will weather the upcoming report well. 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 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 8th report from real estate news and analysis website, Mortgage News Daily, which states, “Mortgage rates continued drifting slightly higher after a strong move to 19 month lows on Tuesday. The caveat is that today's rates are only higher compared to the past 2 days. They're still better than anything else seen before this week. The most prevalently-quoted conforming 30yr fixed rate remains 3.75%, but with slightly fewer instances of 3.625% today. FHA/VA rates remain plagued by volatility depending on the lender due to the announcement of a drop in annual mortgage insurance premiums.”
The article goes on to explain that the problem is that it is not yet clear how the changes to MIP for these programs will be implemented. Yesterday, investors shunned the bonds connected to these mortgages because they were not sure how the changes would affect the value of those bonds. As a result, loan pricing on FHA, VA and USDA loans went up for many lenders, and while some lenders have relaxed their guard a bit regarding this, the situation is still up in the air until the HUD officially announces its game plan.
The MND article also explains, “Tomorrow brings the normally-important Employment Situation Report. Historically, this is the single biggest market mover each month in terms of scheduled economic data. While markets will certainly react immediately following the data, the ensuing hours are less likely to see the same sort of ongoing reaction. Reason being: a strong labor market is the status quo at the moment. A big number in terms of the headline payroll creation isn't the surprise it used to be and a bad number would be taken with a grain of salt. The focus is generally more on Europe, and it will take big news or big market movements there to motivate domestic bond markets (and thus, mortgage rates) to more inspired movement.”
Blue Home Loans explains that the recent trend is for rates to go up ahead of NFP then regain the losses the following week. This could be the case with the coming NFP and there is even a chance that rates could go back down to the lows seen two days ago or even lower if the conditions are right. However, there really is no way to say what rates will look like a month or a week from now, or even the next day, because unexpected upsets are so commonplace in the markets that affect mortgage rates.
For now, the company’s advice for those who are currently processing their loans is to lock in if near closing and for those with more time on their hands and a higher risk tolerance, float very carefully into next week. For those who have not yet started their loan process, applying as soon as possible would be the best plan, since low rates like the ones that have been available since the beginning of this year will almost certainly not be available later in the year when the Fed’s rate hike starts to have an affect.
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