Mortgage Rates Reach 3 Week Highs, But Still Near 16 Month Lows

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California mortgage company, Blue Home Loans, Inc., takes a look at the recent mortgage rate trends and offers help and advice for those who are seeking the best mortgage loans.

Mortgage rates reached the highest levels in 3 weeks after the Fed announcement today; however, according to real estate news website, Mortgage News Daily, these two things may not be as closely connected as it may seem. Blue Home Loans, Inc., a California full-service mortgage company that has been helping borrowers to find the best possible home loans for many years, takes a look at the current mortgage rate news and offers some advice for those who are not sure how to proceed with their home loan plans.

An Oct 29th report from Mortgage News Daily gives more insight into the current situation. It says, “Mortgage rates rose to the highest level in 3 weeks after today's Fed Announcement. The move was a two-part process with initial rate sheets being weaker in the morning and mid-day reprices (lenders raising rates) following the Fed. The pace of the movement was moderate, leaving 4.0% intact as the most prevalently-quoted conforming 30yr fixed rate for top tier borrowers, but 4.125% is now much closer than it had been. Many lenders are already there today.”

The same article continues, “It's important to understand that the Fed ending QE and today's rise in rates are not in a direct causal relationship. Market participants unanimously agreed that today would mark the end of the Fed's third round of quantitative easing (QE3) and that part of the announcement was no surprise. It's also important to understand that, apart from the past 3 weeks, today's rates are the lowest in more than 16 months. The point is that mid-October was a bit of a wild time for the bond markets that underlie rate movement and today's higher rates are more to do with a correction to that wild move. In fact, bond markets ended up very little-changed from the trading levels in place just before the Fed Announcement. Bottom line, this was a move that was already in progress and today's volatility just made it slightly worse.”

Blue Home Loans explains that while rates are higher than they have been these past weeks, they did not go as high as some had feared they would go after the end of QE. It is still too early to tell if rates will continue to go up or if rates will recover somewhat after lenders reprice tomorrow. For now, the safest course of action, especially for those who are within fifteen days of closing on their loans, would be to lock in. Those who are a bit more risk-tolerant, and who have more time on their hands, may wish to wait and see which way mortgage rates head from here.

Those who are considering applying for a home purchase or refinance loan may still find that now is a good time to get things started. Mortgage rates are still near the lowest levels of the year and Blue Home Loans can help California mortgage borrowers to take full advantage of this. 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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