Mortgage Rates Dropped To Six Month Lows Despite Blowout Employment Data

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

Mortgage rates surprised everyone yesterday by dropping to six month lows despite a stronger than expected jobs report. These new low rates are an unexpected blessing for many home loan borrowers, but right now the question is – will rates continues at these levels or start going back up next week? Blue Home Loans, Inc., a California based full-service mortgage company that has been helping loan borrowers find the best rates and loan scenarios for years, comments on the current state of affairs for mortgage rates and offers some insight for those who are not sure how to proceed with their home loan plans.

A May 2nd report from Mortgage News Daily explains the current mortgage rates situation, saying, “Mortgage rates and many other areas of financial markets moved in shockingly counterintuitive ways after today's big jobs report. Nonfarm payroll creation stood at 288k in April, significantly higher than the 210k forecast. This is the single most important piece of economic data out each month, and when it's so much stronger than expected, that historically all but guarantees that rates will be heading higher. But that was NOT the case today! To give you an idea of how rare this is, a 78k 'beat' has never before resulted in a move like this. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is now solidly into 4.25% territory with some lenders already close to 4.125%!”

The Blue Home Loans team explains that the factor that most impacted this stunning move lower for mortgage rates is the escalation of tensions in the Ukraine situation. While this is probably not the only reason rates fell so sharply when conventional wisdom dictates a stronger than expected jobs report equals higher mortgage rates, borrowers should also understand that this type of geopolitical turmoil will usually push investors towards “safe haven” investments, such as mortgage-backed securities (MBS) which directly influence mortgage interest rates. This seems to be what happened towards the end of this week, and while it is a good thing for mortgage borrowers, the California mortgage company warns that borrowers should not count on this improvement to last forever.

While it is possible rates could further improve next week, especially since many lenders did not have a chance to reprice before the week ended, there is also the fact that geopolitical factors are inherently unpredictable. A de-escalation of the situation, or even some sort of resolution, would take away the motivation for rates to go lower, and they might even climb much higher without this factor. Because of this, Blue Home Loans’ advice to most mortgage borrowers is that it might be best to lock in at the first opportunity next week. Those who are near to closing on their loans should especially follow this advice; however, even those who have not started their loan process yet can benefit from this advice by locking in on application, preferably with a lender that allows for renegotiation. This will allow them to keep today’s low rates in reserve while keeping their options open in case something big happens and rates dip lower before their loan closes.

Blue Home Loans can help those 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 hundreds of thousands of dollars on their loans. The company recently experienced an expansion thanks to an increase in clients drawn by rave reviews of the company. As a result, Blue Home Loans, Inc. now offers many exciting new resources and loan programs that are not available with many other companies. The Blue Home Loans website now 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.

CA Dept of Real Estate -- Licensed Broker #01094374 NMLS #93836

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Brandon Blue
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