Mortgage Rates Make Slight Comeback From Friday’s Heavy Losses

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Blue Home Loans, Inc. comments on the recent activity in mortgage rates reported by Mortgage News Daily and offers some insight and advice for California homeowners and new home buyers.

Mortgage rates experienced a sharp increase last Friday, rising at the quickest pace in nearly a year and a half. Today mortgage rates made a slight comeback from Friday’s heavy losses, but it remains to be seen whether this is just a small reprieve before rates continue to head up or if mortgage rates can keep improving. California full-service mortgage company, Blue Home Loans, Inc., has been helping clients to gain the maximum amount of savings on their home loans for many years and now takes a look at the recent activity in mortgage rate levels and gives some advice for those who have home loan plans for the near future.

The California mortgage company takes a look at the report from real estate news website, Mortgage News Daily, posted this March 9th, 2015, which says “Mortgage rates managed to recover only some of Friday's heavy losses. The most prevalent conventional 30yr rate for top tier scenarios remains at its new perch of 4.0%, though a few lenders remain at 3.875%. That means that most borrowers will see today's improvement in the form of slightly lower closing costs for the same rates quoted on Friday. The bond market (which includes the mortgage-backed-securities that most directly affect mortgage rates) were completely quiet today. There were no banner events helping rates recover--merely an incidental drift, backing away from Friday's extremes.”

So where did this positivity for mortgage rates come from exactly? The MND article goes on to explain, “Some help may have come from strength in overseas bond markets as the European Central Bank officially began its new bond buying campaign today. That said, it still seemed that US bond markets were in their own world, wandering gingerly back from the very scary place they ran to on Friday. The bigger question, of course, is whether or not today's resilience is here to stay. Unfortunately, we could have asked the same question on several occasions in February, yet rates ultimately continued higher. As such, a mere one-day bounce is far too short (and in this case, far too shallow) to adjust the current game-plan, which is to treat February's bounce as a trend toward higher rates that will continue until it's clearly defeated. It is, by no means, defeated. It hasn't even broken a sweat yet.”

Blue Home Loans explains that those who are looking for better rates should be very careful when floating. With the increasing trend in rates still very much intact, the risk could be too great for those who will be closing on their loans soon. Those who are just starting their loan process should also consider locking in soon. There might be some more improvements on the horizon, but the risk right now may outweigh the potential benefit and it is also important to keep in mind that while mortgage rates have been rising over the past month or so, when it comes to the big picture, they are still near historic lows. California mortgage borrowers who want the highest chance of finding the best mortgage rates in California can put their trust in the mortgage experts at Blue Home Loans, Inc.

Co-owner of Blue Home Loans, Brandon Blue, says, “I love the personal satisfaction that I receive when I am able to save my clients both time and money--getting them the best deal I possibly can on their home loan. Whether you are looking to purchase your dream home, or want to save money on your existing home, feel free to give me a friendly phone call. I promise that you will not be given some cheesy sales pitch, and that I will listen to your mortgage needs without utilizing any high pressure sales tactics.”

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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