California Mortgage Rates Hold Surprisingly Steady After ECB News

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

Yesterday saw the long awaited news about whether or not Europe would instigate a quantitative easing program and the particulars of the program. While anticipation of this news has undoubtedly affected mortgage rate levels recently, and the program will likely continue to have an impact on future mortgage rates, yesterday saw California mortgage rates holding surprisingly steady despite the market volatility that ensued after the ECB announcement. 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 at the recent mortgage rate trends and gives some advice for those who have home loan plans for the near future.

The mortgage company takes a look at the report posted by mortgage and real estate news website, Mortgage News Daily, which was posted this January 22, 2015. This report explains, Mortgage rates didn't budge today. That's impressive considering the amount of volatility in financial markets leading up to and following the European Central Bank (ECB) announcement. Markets widely expected the ECB to announce a new quantitative easing package today. That's indeed what happened, but when it comes to European monetary policy, things are never as cut and dry as they are for other central banks that aren't trying to balance the needs and laws of 19 separate countries against the economic realities and legal constraints of the broader Eurozone.”

That same article continues, “If this sounds complex, that's because it is. And that makes for wide-ranging reactions in financial markets. Not only that, but financial markets have this well-known habit of trading in advance of actual events based on expectations and even rumors. Today's ECB news had plenty of both. Consequently, global bond markets (which eventually trickle down to affect specific areas of domestic bond markets, including mortgage rates) were all over the place for most of the day. Mortgage rates had a plan though. It involved adjusting rates higher over the past several days and leaving plenty of extra room for the volatility that was very likely on the way. The plan (whether intentional or not) worked perfectly, leaving lenders with very little need to change rates from yesterday and very little need to issue mid-day reprices during the day.”

Blue Home Loans explains that the end result of this anticipatory trading and consolidation in mortgage rates was that by the end of the day mortgage rates (which had not moved much at all) were pretty much in line with trading levels in the secondary mortgage market. Of course, this is not the end of the story. As time goes by and it becomes clearer how this QE program will benefit domestic markets (if they do at all) borrowers can expect to see some more fluctuation in rates and there is a decent chance rates will start to move lower again.

For those who have been looking for the right opportunity to apply for a home loan, the California mortgage company's advice is that the sooner they get their application started the better. Rates are still near the lowest level they have been in more than a year and half and there is a good chance they could go even lower soon. 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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