California Mortgage Rates Enjoy A More Concerted Push Lower Following European Rate Rally

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

Yesterday mortgage rates made a slight recovery from last Friday’s high levels that were a result of a better than expected jobs report. While a small step in the right direction was encouraging, the verdict was still out as to whether or not rates would continue to improve or if the small recovery was just a head fake as the trend continued towards higher levels. Today brings a bit more hope for mortgage borrowers however, as California mortgage rates enjoyed a more concerted push lower following the European rate rally that resulted after the implementation of the ECB’s QE program. 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 activity in mortgage rate levels and gives some advice for those who have home loan plans for the near future.

The California mortgage company takes a look at the report from real estate news website, Mortgage News Daily, posted this March 10th, 2015, which says “Mortgage rates moved lower for a second day today, with the combined improvements erasing roughly half of the losses seen on Friday. Several lenders managed to reprice to slightly lower rates late in the day. Those that didn't would have extra room to improve rates tomorrow morning, all other things being equal. The gains bring a respectable handful of lenders back to 3.875% in terms of the most frequently quoted conventional 30yr fixed rate for top tier scenarios. 4.0% is still slightly more common, but with lower closing costs today vs yesterday.”

The MND article explains, “Once again, there were no major events or headlines for US bond markets. Instead, movement cues have come from European trading and even stock market weakness. Rates in Europe have been falling rapidly as the European Central Bank began its quantitative easing campaign yesterday. There is high level of correlation between core European bond markets and US Treasuries. While Europe certainly moves much more on Euro-specific news/events, Treasuries still get some benefit. Mortgage-Backed-Securities (and thus mortgage rates themselves), similarly, tend to move in concert with Treasuries. It made sense to be skeptical about a single, relatively mild day of gains following Friday's heavy losses. But now the gains have been accelerated today.”

Blue Home Loans explains that the U.S. could continue to see rates improve thanks to European influence, but even though European headlines have often been the driving force in rate movement for this year and the last, this does not negate the importance of domestic data and occurrences. As such, those who wish to eliminate all risk should lock in their rates now, or lock on application if they have not yet applied for a loan, and those who choose to float should do so very cautiously, with an eye on any movement in markets that could send rates moving one way or the other.

California borrowers who wish to avail of the lowest California mortgage rates can rely on the team of mortgage professionals at Blue Home Loans to help them find the right loan product for their needs and keep them informed of the best time to lock in a great rate that could help save thousands of dollars in mortgage payments. Co-owner of Blue Home Loans, Brandon Blue, says, “I love the personal satisfaction that I receive when I am able to save my clients both time and money--getting them the best deal I possibly can on their home loan. Whether you are looking to purchase your dream home, or want to save money on your existing home, feel free to give me a friendly phone call. I promise that you will not be given some cheesy sales pitch, and that I will listen to your mortgage needs without utilizing any high pressure sales tactics.”

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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