Mortgage Rates End Week Slightly Lower But Bond Markets Still In Very Narrow Range

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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 ended this week by moving slightly lower yet again, but still have not broken lower than the narrow range that they have been stuck in for quite some time – a lack of movement which is mirrored in bond markets which directly influence mortgage interest rates. 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 20th report from Mortgage News Daily gives a good rundown of the current situation. It says, “‘The Range’ can vary depending on whether we're talking about long or short term. These days, it refers to a bit of both. The short term range stretching back to June 3rd has been limited to 10yr yield of 2.57 almost exclusively, on the low end and 2.66 on the high end. In terms of end-of day levels, that range narrows to 2.60-2.65. That's pretty narrow for 3 weeks of trading!”

That same article continues, “Additionally, 2.57 and 2.60--the two ways to look at the lower end of the range--are the same two levels that have served as the lower end of the range for almost all of 2014. Yields broke lower for only 2 weeks in the second half of May and have since returned, and with a vengeance at that! Today's trading did absolutely nothing to change that. There were no significant events and activity was light. While early session weakness threatened to bring yields to the 2.66 barrier, markets quickly improved and haven't looked back for the rest of the day. 10's are now drifting out just over 2.60 and MBS have fared even better--currently up 6/32nds at 102-12. Until something new happens, we have no momentum and no trend for now.”

What does this mean for mortgage borrowers? Blue Home Loans explains that mortgage rates will usually stay closely in line with changes in bond markets, especially mortgage-backed securities (MBS). Bond markets and mortgage rates are inversely related, so higher bond prices usually results in lower mortgage rates. Recently rates have been creeping downwards, and ended this week at averages of around 4.25%. The California mortgage company explains that with rates this low, and no telling what next week will bring since bond markets ended the week at a standstill, some borrowers may find it safer to lock in their current mortgage rates rather than risking a move upward in the week to come.

This advice would especially be applicable to those who are near to closing on their loans, since even a temporary rise in rates could mean losing out on some of the gains seen over the past week. However, even those who have not started their loan process yet can benefit from this advice by locking in on application with a lender that allows for renegotiation. This will allow them to keep current low rates in reserve while keeping their options open in case rates dip lower before their loan closes.

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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