CA Mortgage Rates Down To Lowest Levels In A Year and a Half

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Blue Home Loans, Inc. comments on the recent mortgage rate movements reported on Mortgage News Daily and offers some insight for California home owners and potential home buyers.

Blue Home Loans, Inc. is a full-service California mortgage company lead by father and son, Robert and Brandon Blue, that has been helping California mortgage borrowers to find the best rates and loan programs for many years. Now, with the drop in CA mortgage rates down to the lowest levels in a year and a half, the mortgage company takes a look at what has been influencing mortgage rate movement and comments on the trends reported at MortgageNewsDaily.com.

The MND article, posted December 10th, reports, “Mortgage rates moved only slightly lower today, but it was enough to bring the end-of-day average to the lowest in more than a year an a half. For the record, there were lower rates available on the morning of October 15th, but markets moved so much during the day that the last rate sheets of the day weren't quite as strong as today's. Similar rates were also seen at the end of the day on December 1st.”

So what caused rates to slip past the lowest levels of the year today? The same article explains that today’s strength in mortgages mainly comes as a result of weakness in other areas, especially oil and stocks. The MND article says, “It's not that either of these has a reliable, direct connection to rates, but generally speaking, when stocks are selling as much as they were today, bond markets tend to pick up some of that money. When bond markets improve, prices move higher and yields (or "rates") move lower.”

Blue Home Loans explains that this process of higher-yields-equals-lower-rates takes a bit longer and has less of an overall affect for mortgage rates than it does for more mainstream bond market components, such as U.S. Treasuries. Because of this slower reaction, mortgage rates were pretty much flat for the first half of today, and some lenders even had worse rates than yesterday. But mid-day reprices helped get rates to where they are right now and there is some hope that this could continue to tomorrow since there is a chance that some lenders did not get the chance to pass over all the gains yet, so borrowers might see even better reprices tomorrow morning.

The Blue Home Loans team of mortgage professionals can help those who are planning to purchase a home in California, or those who already have a home and wish to refinance their mortgages, to take advantage of today’s lowest California mortgage rates and get the best possible loans for their specific mortgage situation. 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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