New Lows For CA Mortgage Rates Provide Great Home Purchase and Refinance Opportunity For California Borrowers

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

Mortgage rates have surged lower in just the last few days, with movement in the last two days bringing national averages a full eighth of a point lower. These new lows for CA mortgage rates definitely provide a unique opportunity for California mortgage borrowers, but the question is – how long will this opportunity last? 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 a the recent mortgage rate trends and gives some advice for those who have home loan plans for 2015.

Blue Home Loans takes a look at the January 6th report from real estate news website, Mortgage News Daily, which says, “Mortgage rates are on an absolute tear. In the past 2 days, they've rocketed a full eighth of a point lower. They're a full quarter point lower than the average rates available in 2nd half of December and .375% lower than December's highest rates. For anyone feeling like they missed out in May 2013 as the taper tantrum began, here's your opportunity. Today is officially the first day we can say that rate sheets are at least as good as May 21st, 2013, the day before Bernanke's congressional testimony unofficially kicked off the taper tantrum and sent mortgage rates quickly higher. At that time, the abrupt rise meant a move up to 3.75% from 3.625%. Today's gains restore 3.625% as the lowest widely-available rate for the best borrowers.”

The MND article goes on to warn, “Unfortunately, that poses a bit of a problem from a historical standpoint. Past examples of similar moves suggest we have a bounce in the near future. This is by no means guaranteed, but on other occasions where rates have fallen this fast and for this many consecutive days, there's a much better than random chance that we get at least one day of a correction. The most recent example on October 15th resulted in rates moving higher for almost 3 weeks! While the circumstances surrounding today's drop in rates are different, it's still a good reminder about the potentially fleeting nature of long-term lows.”

Blue Home Loans, Inc. explains that while there is still hope that the long term trend for rates could continue to stay low, there is always a chance that rates could bounce higher at any time. Those who are near to closing on their loans will probably want to protect these gains by locking in their rates as soon as they can and those with more time on their hands may choose to continue floating, but they should be extra cautious and be prepared to risk settling for a slightly higher rate if things do start heading back up.

Those who have not yet started their loan process yet will probably want to apply as soon as they can so that they can benefit from the great opportunity 2015 mortgage rates are providing to save money on their home loans. Having a loan application in process now is not only a smart idea because of the decreasing trend in mortgage rates, but also because this could be the last time mortgage rates are this low in a long time seeing as the Fed’s rate hike later this year will likely result in noticeably higher rates from there on out.

California borrowers who want to be sure that they benefit from the best California mortgage rates in 2015 will find that they can count on the mortgage experts at Blue Home Loans, Inc. 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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Brandon Blue
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