California Mortgage Borrowers Benefit From Yet Another Rate Decrease - Blue Home Loans, Inc. Weighs In

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California mortgage experts at Blue Home Loans Inc. comment on the recent dip in rates reported by Mortgage News Daily and give some insight into how those who are thinking of financing or refinancing a home could best take advantage of today’s low rates.

California mortgage rates have been inching slightly lower recently, in amounts so small that the decrease is usually only seen in slightly lower closing costs. Blue Home Loans, Inc., a California mortgage company that has been dedicated to helping borrowers to obtain the lowest wholesale mortgage rates and best loan options for many years, takes a look at the newest rate decrease reported by mortgage and real estate news website, Mortgage News Daily, and explains how California mortgage borrowers can best take advantage of currently low mortgage rates.

A November 18th report from Mortgage News Daily explains, "Mortgage rates barely budged today, but moved in the right direction on average. Several lenders were actually slightly higher in rate, but most lenders improved. This technically brings rates to another 3-week low, and the best levels since October 24th. Again though, this isn't necessarily true for every individual lender due to the narrow overall range and small day-to-day movement. --- When we talk about rates being the lowest in 3 weeks and then throw in all these caveats, it might seem like there's not much to cheer. But this strength--moderate though it may be--is actually rather resilient given some of the headwinds in broader bond markets."

Blue Home Loans explains that mortgage rates are most directly influenced by mortgage-backed securities, or MBS. The two are inversely related, so when MBS are high, mortgage rates go down and when MBS go down mortgage rate levels go up. There has been a lot of activity in bond markets this week that could have pushed mortgages down as an investment, but luckily this did not happen. As the MND article explains,

"As record amounts of corporate bonds hit the market this month, not only are there more fixed-income investments out there to compete with mortgages and Treasuries, but the issuance process itself puts some upward pressure on Treasury yields (the reason for this is fairly abstruse, but suffice it to say these companies can protect themselves from market volatility during their bond sales by selling Treasuries. More selling results in lower prices and higher yields/rates). Bottom line, Treasuries have endured that activity fairly well, and mortgages have endured the Treasury volatility quite well in turn. If one were so inclined, those examples of resilience could be taken as some sort of clue about underlying positivity waiting for its chance to express itself."

Blue Home Loans notes that while there is hope that rates will continue into positive territory, there really is no way to be certain what will happen next. The MND article also states that these scenarios are "never that simple when it comes to mortgage rates or financial markets" and thus Blue Home Loans always advises borrowers to keep the volatile nature of mortgage rates into account when it comes to deciding when to lock in a home loan rate. As things stand, California mortgage rates are at three week lows, and there is a chance they could go lower.

Those who have been planning to apply for a new home purchase or refinance loan would be wise to take action now and either lock in their rate on application, or cautiously float until it is clear where mortgage rates are really heading. Home buyers and owners who are looking for the best California mortgage rates and loan options will find they have a strong ally in Blue Home Loans' team of mortgage professionals. The Blue Home Loans company 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