Mortgage Rates Dip Slightly Lower, Preserving The Narrow Range Of The Last Two Months

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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 slightly lower today, bringing them safely back into “the range” which has been prevalent for around two months now. This range is an extremely narrow one, ranging between 4.125% and 4.25%, usually with closing costs being the only real palpable evidence of any slight “dips” or “increases” in 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.

The California mortgage company explains that with yesterday’s lack of market participation it was difficult to determine if rates would be moving higher than this aforementioned range, since rates remained at the same levels as last Thursday after the Jobs report pushed rates upwards – just at the edge of the higher end of the range – and any further losses in MBS would likely bring rates higher than this. However, today’s moderate decrease in rates (seen, again, mostly as a decrease in closing costs) brings rates definitely back into the range.

A July 8th report from Mortgage News Daily further explains the situation. It says, “Mortgage rates improved today. The bonds that most directly affect rates got a boost from stock market weakness and ongoing European bond market strength. Today's drop in rates is significant in that it preserves a range that's been intact since early May. The range in question is small in terms of rates--stretching only from 4.125% to 4.25%. Most of the day-to-day movement takes place in the form of closing costs (because lenders tend to offer rates in .125% increments). So today's most prevalent rate quotes are the same as yesterday's (4.25%), but with slightly lower closing costs. This drop in closing costs equates to 0.03% in terms of effective rate.”

That same article says, “As has so frequently been the case in 2014, any time we're inside a narrow range, borrowers who are inclined to float have more justification in doing so, provided they're ready to lock if rates move back to the higher end of the range. On a cautionary note, while rates have adhered to this range for 2 months now, the visits to the lowest levels have been progressively higher. This could indicate that the longer-term momentum is pointing very slightly higher, and we'd need to see a move below late June lows to rule that out.”

Blue Home Loans explains that in the current situation floating could be a good option for those with longer lock periods, as long as they keep a close eye on the markets and also keep in close contact with their loan officer in case they see an opportunity (or the necessity) to lock. Those who are nearer to closing on their loans may wish to simply lock in today’s best home loan rates, as they may not get a better chance to do this before their loan comes to a close.

In the case of those who are just starting with their loan process, the company stresses the importance of finding the right loan product, since the possibility of a long term increase in rates will make finding an affordable loan scenario a bit trickier. New borrowers who are worried about rising rates can always lock in on application and if they do this with a lender that allows for renegotiation, they will still have their options open in case they see better rates before closing 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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