California Mortgage Rates Consolidate Ahead of ECB Announcement

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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.

Bond markets went for a wild ride yesterday as rumors of a leak regarding the European Central Bank announcement and news of a rate cut by the Bank of Canada caused a spike in volatility. With all that information coming in, and markets not really knowing how to react, there was quite a mix in rate sheets among lenders yesterday, with many showing higher rates while others were improved. By the end of the day, both national and California mortgage rates consolidated to moderately higher averages as markets prepared for today’s big news. 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 21, 2015. This report explains, “Mortgage rates moved moderately higher on average today. Recently high volatility in financial markets continues driving stratified pricing strategies. That's a long way of saying that different lenders are adjusting rates by different amounts, and sometimes even in different directions. For instance, a few lenders actually offered improved rates today for some scenarios while other lenders were much higher… Much of today's volatility had to do with unexpected headlines concerning global central banks. In general, the market's focus is on the European Central Bank (ECB) as it's expected to announce a quantitative easing package tomorrow morning. Potential details of that program were leaked this morning. This made for the initial spike in market volatility. It was exacerbated by another surprise from the Bank of Canada, which announced a rate cut not even 30 minutes after the ECB leak.”

Blue Home Loans explains that while yesterday’s rates were all over the place, bond markets will definitely get a better picture of where to go from here after today’s upcoming ECB announcement. This should finally clear up the question of whether or not some sort of quantitative easing program will be put into place and what that will mean for U.S. mortgage rates. The rumor swirling yesterday was that the easing program will, indeed, go into effect, but spending would be to a lesser extent than expected. While this may or may not be true, the other particulars of the program will likely play a big part in determining whether domestic mortgage rates will benefit or be hindered by such a program in Europe.

The company also notes that whether the fallout from the announcement is ultimately good or bad for long term domestic mortgage rate trends, it will likely take some time for financial markets to digest the information, thus borrowers should expect a lot of unpredictability for mortgage rates in the hours and even days following the big news. Those who are averse to this type of volatility should try to lock in their rates before the news hits and markets start to react. Yesterday’s closing rate sheets showed California mortgage rates that are still in line with the lowest levels seen in the past 20 months, so those who want to lock in can feel good about doing so.

Those who want to wait things out should be prepared for the worst case scenario and quickly lock in if it appears that rates are headed in the wrong direction and the risk grows too high. Prospective borrowers will also want to get things moving with their mortgage applications as soon as possible, since rates are either currently at the lowest levels that they will be in a long time (if an ECB QE program does not pan out) or better rates will be available very soon (if it does). 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 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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