CA Mortgage Rates Continue To Inch Back From Recent Weakness

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Blue Home Loans, Inc. comments on the mortgage rate movement reported by Mortgage News Daily and offers some insight for California homeowners and potential home buyers.

European influence helped CA mortgage rates continue inching back from recent weakness today. The gains in domestic bond markets were mainly an indirect result of instability in Greece, which caused Germany’s 10yr sovereign debt yield to drop to new record lows. Blue Home Loans, Inc. takes a look at some of the factors that have affected U.S. mortgage rates today and offers some insight for those with home loan plans in the works.

The mortgage company looks at the December 29th report from real estate news website, Mortgage News Daily, which says, “Mortgage rates continued chipping away at the moderately abrupt increases seen last week. Today's gains were indirectly a result of political instability in Greece. After Greece's parliament failed to elect a new President, the country will be forced to hold a new national election. The frontrunner is an advocate of Greece exiting its bailout agreement. At best, this has growth implications for the Eurozone. At worst, it could be broadly destabilizing.”

That same article continues to explain, “When such things happen in Europe, the strongest countries with the soundest sovereign debt end up coming out ahead. The benchmark for European bond markets is Germany, and Germany's 10yr sovereign debt yield fell to another record low today after the Greece news. Strength in the German bond market usually translates to strength in the US bond market, and this includes the mortgage-backed-securities that dictate mortgage rates. Of course it's not a one-to-one relationship, but a positive contribution nonetheless--especially on a day where little else is happening to inspire market movement.”

Blue Home Loans explains that geopolitical volatility will usually have an indirect affect on mortgage rates since these events cause investors to flock to more stable investments, like mortgage-backed securities (MBS) which are inversely related to mortgages rates – MBS prices go up, mortgage rates go down. This was the case today and this volatility could continue to have an affect on mortgage rates in the week ahead. However, mortgage borrowers should also be aware that market participation is still below normal due to the holidays, so any movement this week may not necessarily be indicative of the trends that will be seen in the beginning of 2015.

For now, Blue Home Loans explains, CA mortgage rates are in pretty good territory so those who are near to closing on their loans might want to consider locking in and removing all risk. Those with longer lock periods ahead of them, or those who have not yet started their loan process, might want to wait and see what next week brings, since the longterm trend for mortgage rates is still on a downward slope. In any case, those who have not yet applied for a loan should do so soon if they feel they are ready, because while rates have a chance of getting lower at the beginning of next year, mortgage rates are predicted to rise towards the middle of the year.

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