Mortgage Rates Inch Higher For CA Borrowers As Risks Escalate

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Blue Home Loans, Inc. comments on recent mortgage rate movement reported by Mortgage News Daily, and offers advice for California borrowers with home loan plans in the near future.

Mortgage rates had a great run recently, bringing back the best levels seen over the past year and a half during the week of Thanksgiving. However, all good things must come to an end, and it appears that the first week of December may be bringing these low mortgage rates to an end – at least for now. This week has seen mortgage rates inch higher for California borrowers, as the important data being released, and the natural push back from the Thanksgiving week trend, escalate the risk of rate increases that might set the tone for the rest of the month. Blue Home Loans, Inc., a California mortgage company dedicated to helping their clients find the best possible rates, takes a look at the recent rate trends reported by Mortgage News Daily and offers advice to those seeking the maximum savings on their homes.

The MND article posted this December 3rd states, “Mortgage rates moved higher today but at a gentler pace than yesterday. In fact, underlying markets managed to hold fairly close to unchanged levels. Today's rate sheet weakness instead reflects yesterday afternoon's market weakness. It wasn't enough for many negative reprices yesterday, so lenders simply adjusted this morning's rates sheets to account for it. Looked at another way, lenders were getting caught up with weakness that wasn't quite severe enough to warrant mid-day reprices yesterday. The deterioration puts 4.0% back in the driver's seat as the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers. 3.875% is still very close.”

Blue Home Loans explains that despite rates moving up again, thanks to the decreases of last week, California mortgage rates are still near the lowest levels that have been seen all year. However, this could quickly change, as is discussed by the MND article which continues, “Yesterday, we discussed the fact that further losses were at least an equal possibility and that it didn't make much sense to bet against the prevailing momentum until it's clearly run its course. Today's relative flatness in MBS markets (the "mortgage-backed-securities" that most directly affect mortgage rates) shouldn't be taken as a sign of subsiding momentum. Rather, it's more of an abstention. Of these 3 days at the end of the week, each is more important than the last. That means the reaction to those events should be smaller than it otherwise would be until markets have had a chance to see them all. This is still an environment where risk outweighs reward (largely because we can't yet rule out the risk that rates will move higher for the rest of the month).”

The Blue Home Loans team explains that there is still some hope that mortgage rates will see lower levels before the end of the year, and it will probably much clearer which way short term rates will head in the next few days with the European Central Bank announcement tomorrow and Friday’s jobs report following the day after. For now, the company advises those who do not want to risk higher rates down the line to start their mortgage application as soon as possible and lock in on application. Even those who are holding out for better rates would need to get their application going now for the best chances of floating and locking in a great rate when the opportunity presents itself.

The team of mortgage professionals at Blue Home Loans, lead by father and son – Robert and Brandon Blue, has been helping California borrowers to find the lowest wholesale mortgage rates and the best possible loan programs for each of their unique situations for many years. With the help of Blue Home Loans, borrowers can rest assured that they will be saving the most money on their home loans as possible. 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 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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