Mortgage Rates Settle At 18 Month Lows for California Borrowers

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

It was a volatile day for bond markets yesterday. But luckily, thanks in most part to European markets informing domestic trading, mortgage-backed securities (MBS) held their ground and as a result, the end of the day saw mortgage rates settle back in at 18 month lows. Blue Home Loans, Inc., a full-services California mortgage company that is dedicated to finding the lowest mortgage rates and the best loan products for its clients, comments on this recent rate trends and offers some insight that may be helpful for California borrowers seeking to buy a new home or refinance their current one.

The company takes a look at the December 11th report from real estate news website, Mortgage News Daily. This article says, “Mortgage rates didn't move much today, depending on the lender. Lenders that reissued improved rate sheets yesterday afternoon are generally in the same territory or slightly worse. Lenders that did not reprice yesterday are slightly better today. On average, rate sheets are close to 'unchanged' with 3.875% remaining the most prevalently quoted top tier, conforming, 30yr fixed rate. Lower rates are available, but require higher upfront fees.”

That same article goes on to explain, “The fact that rates held steady today is a welcome development considering the market headwinds. The mortgage-backed-securities (MBS) that most directly influence mortgage rates tend to suffer in the face of stronger economic data, and this morning's Retail Sales report was very strong. While that did cause weakness in MBS initially, it wasn't the only factor in play. As has been the case frequently in 2014, European markets were informing domestic trading until mid-day.”

Blue Home Loans explains that weakness in European markets will often spill over to domestic bond markets and in some cases cause rates to go lower, or at least keep them from getting much higher, which was the case earlier this year when European concerns served as something of a wet-blanket, keeping rates from rising too high. This influence seems to have grown to the point where it often seems to trump domestic economic data when it comes to mortgage rate influencers, even very weighty data such as the monthly jobs report.

However, this does not mean that borrowers are always on safe ground when it comes to waiting around for the right time to lock in a good mortgage rate. It is important to keep in mind that without this influence from across the sea, mortgage rates might otherwise be at quite different levels right now. This means that if and when European markets turn a corner, domestic rates may have a lot of catching up to do. This and the fact that mortgage rates are expected to increase in 2015 means that those who have home loan plans but have not acted on them yet might want to get serious when it comes to starting their loan application so that they will have the option to lock in the best loan rates available.

The Blue Home Loans team of mortgage professionals can help those who are planning to purchase a home in California, or those who already have a home and wish to refinance their mortgages, to take advantage of today’s lowest California mortgage rates and get the best possible loans for their specific mortgage situation. 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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