Mortgage Rates Finally Break Range… But Just By A Fraction

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California mortgage company, Blue Home Loans, Inc., comments on the current mortgage rates trends and offers advice for those who are seeking the best home loans.

Mortgage rates moved to their lowest levels of the month today, beating out June 2nd for that title. The move follows weak economic data and a weaker than expected reading of first quarter GDP. This weakness has helped mortgage rates to finally break lower than the range, but only just slightly. Blue Home Loans, Inc., a California-based full service mortgage company that has been helping CA residents find the best rates and loans available for many years, has been keeping track of these recent mortgage rates trends and now comments on the current situation and offers some advice for those who are not sure how to proceed with their home loan plans.

A June 25th report from Mortgage News Daily helps give a good picture of the current situation. It says, “Mortgage rates fell nicely today following the much weaker-than-expected reading on Q1 GDP. The improvement takes average rates to their lowest levels this month, just edging out June 2nd--previously the best day. This also pushes the most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) to 4.125% from the recent 4.25% level. Both rates are common, but 4.125% took over today. In many cases, the actual quoted rate would be the same as yesterdays but with lower closing costs. Expressed in terms of 'effective rate,' the drop in closing costs amounts to 0.04%.”

That same article explains, “A prominent feature of bond markets and mortgage rates in June is that everywhere you look, rates have been contained by a range! In terms of average mortgage rates, the range was as narrow as 4.25%-4.25% (because the average rate itself didn't change... only the closing costs associated with 4.25%). In terms of 10yr Treasury yields--an interest rate benchmark that tends to move in concert with mortgage rates--the range has been 2.57-2.66% with uncanny reliability since early June. That range was broken today, but only slightly. There are two ways to approach this depending on your level of risk tolerance. First and foremost, any time rates are at the lowest levels in nearly a month, it's a compelling argument to lock. Additionally, rates haven't risen in 6 of the past 6 days and they've fallen in 7 of the past 9. In general, the more consecutive days markets move in one direction, the more likely a correction becomes, even if only temporary.”

Blue Home Loans explains that the other way to look at the situation is to hope that this is a potential shift away from the range, and that perhaps rates can go even lower. Whether this will actually be the case will be clearer tomorrow; if rates fail to go back up to “range” levels it could be a sign of a new trend. In any case, those who are considering whether to lock or float need to assess their risk tolerance and if they will still be okay if rates do go back up again. As always, those who are very near to closing on their loans should consider locking in the current rates, as even a temporary correction higher could mean losing out on a better mortgage interest rate for their loan.

Those who choose to float should do so carefully, and stay in contact with their loan officer who hopefully keeps close watch over the pulse of the finance markets that affect interest rates. Those who have not yet started their loan process and are worried about higher rates later in the year can lock in on application with a lender that allows for renegotiation. This will allow them to keep current low mortgage rates in reserve, while also leaving their options open if rates drop lower before they close on their loan.

Blue Home Loans can help California borrowers who are looking for the best rates, lenders and loan programs to find exactly what they need so that they can take advantage of today’s lowest mortgage rates and save thousands of dollars on their loans. As the Blue Home Loans website says, "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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Brandon Blue
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