California Mortgage Rates Weather Strong Jobs Report Surprisingly Well

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Blue Home Loans, Inc. takes a look at the mortgage rate movement recently reported by Mortgage News Daily and offers some insight for borrowers with home loan plans in the near future.

Blue Home Loans, Inc. is a full service California mortgage company that has been helping the homeowners and buyers of California to get the best rates and home loan programs for many years. The company not only specializes in nearly every home loan product available in California, but is also adept at keeping its clients well informed of any changes in the finance market which could affect their mortgage interest rate and thus the total amount that they will spend on their homes. Yesterday brought a monthly event that is closely watched by everyone who is interested in mortgage rate movement – the Non-Farm Payrolls report (NFP). Luckily, California mortgage rates weathered this report, which was stronger than expected, surprisingly well.

Blue Home Loans takes a look at the situation as reported by real estate news website, Mortgage News Daily. The MND article posted on December 5th, says, “Mortgage rates moved only slightly higher today in spite of an exceptionally strong Employment Situation Report. This particular jobs report is the biggest of the month, and by far the most capable market mover when it comes to economic data. When the actual result outstrips the expectation (a median of economist forecasts), the result is almost always higher rates. The bigger the 'beat,' the more reliable that correlation.”

That same article goes on to explain, “And today's beat was very big. Payrolls were created at a seasonally-adjusted pace of 321k compared to estimates of 230k. It's no surprise that bond markets weakened following the report (which implies higher mortgage rates), but it was somewhat surprising to see how LITTLE they weakened considering the uncommonly beat. There were some internal metrics within the report that served as caveats to the positivity, but the fact is that bond markets wouldn't have been able to hold as well as they did if there wasn't some measure of latent positivity.”

Blue Home Loans explains that the fact that rates only worsened slightly is a promising sign for those who have been waiting for mortgage rates to go back down. This gives some hope that rates are intent on getting better before the end of 2014, despite some negative data along the way. Of course, external events will not be ignored completely, and borrowers looking for the best rates should definitely keep an eye out for these market motivators. But without some major motivation to the contrary, it seems like there is a good chance mortgage rates could improve over the next few weeks.

California borrowers who want to take advantage of today’s best California mortgage rates will find that they can count on the mortgage experts at Blue Home Loans 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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