Mortgage Rates Now Near 2015 Highs – Are Rates Done Heading Lower?

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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.

Mortgage rates rose slightly again today and are now near 2015 highs. The increasing trend that has been seen since the beginning of February is in direct contrast to the quick fall in rates seen this January. The question now is – are mortgage rates done heading lower? 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 mortgage rate trends 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 that real estate news website Mortgage News Daily posted on February 10th, 2015, which says, “Mortgage rates remain under significant pressure, having now moved higher almost every day in February. So far, this is the worst month for rates since Nov 2013. While that sounds pretty bad, in this case, the weakness has more to do with a reaction to previous strength. The trend toward lower rates in 2014 had been very slow and steady. January saw an acceleration of that trend and now February is simply bringing us back in line. Even the strongest long term trends undergo these sorts of corrections.”

That same article continues “On such occasions, the question will always be: is this just a correction in a longer term trend or are rates done heading lower? Based on where we are today, it would be far too soon to say that the long term trend toward lower rates is defeated. Fortunately, the strategy is the same either way. At times like these, the lock/float outlook is more defensive. For those of you who are intensely interested in catching the falling knife (i.e. deciding not to lock despite recent moves higher in rates), there's still some room for that provided the risks are understood and that a 'stop-loss' level is understood. One of those risks is that things could still get worse before they get better (i.e. there's more room for rates to move higher without violating the longer term trend). 3.75% is still the most prevalent conforming 30yr fixed quote for top tier scenarios, but 3.875% is now not far behind. A week and a half ago, it was 3.5 and 3.625%.”

Blue Home Loans explains that while the long term trend lower for rates is not broken, it is very risky time for borrowers who are searching for the lowest rates. There is still hope that rates are just undergoing a correction because of the rapid movement lower last month, and some of the major factors that caused rates to go lower are still in place and are not likely to be resolved any time in the near future. Nevertheless, those who are interested in getting the best mortgage rate for their home loan should definitely consider applying for their home loan as soon as they can. Today’s rates are still considerably lower than what was being offered not too many months ago, and those who are brave enough to float may be well rewarded if rates do start to move down again.

California borrowers who want to be sure that they benefit from the best California mortgage rates in 2015 will find that they can count on the mortgage experts at Blue Home Loans, Inc. to find them the best rates and mortgage programs for their unique financial situation and home loan goals.

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 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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