Employment Situation Report Pushes Mortgage Interest Rates Higher

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

The increases in mortgage rates over the past few days have been confirmed today with the release of data from the Employment Situation report pushing mortgage rates even higher. This report is the most influential economic report for most months, and is often a very good indicator of which way mortgage interest rate trends will tend to go in the proceeding month. 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 July 3rd report from Mortgage News Daily gives some insight into the current situation for mortgage rates. It says, "Mortgage rates were higher yet again today, taking their cue from the Employment Situation report. This is the big "jobs report"--the most important piece of economic data month in and month out. It is widely expected to always be the key consideration on the day it's released and today was no different. Less expected was just how strong it was--at least at the headline level. The most important component of the report is the Nonfarm Payrolls reading (which is why you'll sometimes see it referred to as NFP), which came in at 288k today compared to a forecast of 212k. The forecast is derived from the median of multiple analyst/economist forecasts submitted to major data aggregators like Reuters and Bloomberg. When the actual result is stronger than expected, bond markets--and thus mortgage rates--tend to suffer."

Blue Home Loans explains that this scenario did indeed happen today, with higher than expected job numbers resulting in higher rates. However, since the past few days have been marked by higher rates due to other reports, some of the data from which was an early indicator of what the NFP report would look like, the hike in rates was not nearly as drastic as it could have been. It seems that most lenders were expecting the Jobs report to over-perform, and thus much of the increase had already been priced in. As a result, today's move upward brought 4.25% as the most prevalent quoted rate for best-case scenarios, while previously 4.125% had seen an extended run, but luckily rates rising to the next higher increment (4.375%) has not been raised as a possibility yet.

The California mortgage company also notes that with the holiday shortened week, borrowers will have to wait until next Monday if they wish to lock in current rates. Those who are near to closing should consider locking in as soon as they can, as there is a possibility of further increases in the weeks to come, but those who have a longer lock period may wish to wait it out and see if rates will move any lower after this week's increases. One thing that new borrowers should keep in mind at this time is that, with rising rates, finding the right loan program is even more important for those who wish to save money on a home loan.

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 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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