Mortgage Interest Rates Drop To New 2014 Lows

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

Mortgage rates have gone against predictions once again this year, by dropping to the lowest levels in 2014 today. The mortgage interest rates drop is tied to anticipated easy money policies in Europe, which will inevitably impact mortgage rates in the US. 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 May 14th report from Mortgage News Daily explains, “Mortgage rates fell today as the European Central Bank looks increasingly ready for a new round of easing in June. More accommodative monetary policy in Europe makes European government debt more attractive. Germany is the benchmark for EU government debt and when demand rises, US Treasuries benefit as well. When demand for US Treasuries rises, the bonds that underlie the mortgage market also improve, resulting in lower rates. In short, there's a domino effect leading from anticipated easy money policies in Europe all the way to mortgage rates in the US.”

The same article goes on to say, “Because they'll be the most direct beneficiary, European markets move the most at times like this. Treasuries move a bit less, and Mortgage rates a bit less than Treasuries. Even so, the improvement in bond markets was enough to push mortgage rates to new 2014 lows--also the best levels since October 2013. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is now centered on 4.125%. Some borrowers will see the improvements in the form of lower closing costs or higher lender credits. In terms of effective rates, that drop in closing cost equates to a drop of 0.05%.”

Blue Home Loans explains that the current mortgage rate levels have finally broken lower than the range that had been fairly consistent this year, and that this new move may mean that rates could move slightly lower in this new range. This development in mortgage rates could mean more positivity in the long run, but for those who are near to closing on their home loans, it might still be a good idea to lock in these new low rates. 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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