Mortgage Rates Drop Near The 4 Percent Mark

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

After tying the record for most consecutive days without movement, today saw average mortgage rates drop near to the 4 percent mark for 30 year fixed rate mortgages. 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 28th report from Mortgage News Daily says, “After tying the record for most consecutive days with no change, mortgage rates moved significantly lower today. The significance isn't due to the size of the move--as far as day to day changes go, there have been bigger. Rather, the impressive part of today's rally is that it occurred while rates were already effectively at the lowest levels in 11 months, further extending an already strong move lower over the past two months. Through yesterday, rates had been giving the impression that the string of recent improvements was leveling-off and waiting for more important information on the horizon.”

That article continues, saying, “In that context, today was an utter blindside. It wouldn't have been as surprising if rates merely began drifting lower ahead of those key events. They sometimes do that after leveling-off in such a manner, but today was anything but a drift. The most prevalently quoted conforming 30yr fixed rate for best-case scenarios (best-execution) is already close to 4.0%. Some lenders are there already while others are offering substantially lower costs at 4.125%. After today's move, few lenders remain competitively-priced at 4.25%. For imperfect loan files, however, 4.25% is still a sweet-spot in terms of up-front cost vs contract interest rate.”

Blue Home Loans explains that obviously this is great news for those who are seeking the best home loan rates. However, it is important to note that because rates have dropped so low, markets will now be more sensitive to any factors which may result in a move in the opposite direction. This means that while hopefully rates can continue at these new lower levels, it would be wise to proceed as if these new low mortgage rates are not set in stone – because they are not. For this reason, the California mortgage company suggests that those who are near to closing on their loans take advantage of the current home loan rates by locking in as soon as they are able to. 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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