Mortgage Rates Dip Back Down To November Lows – Still Range Bound

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Blue Home Loans Inc. comments on the mortgage rate movement reported by Mortgage News Daily and offers help for California home loan borrowers seeking the best rates and loan programs.

Blue Home Loans, Inc. is a full-service California mortgage company that has been serving the home buyers and owners of the Golden State for many years, offering the best purchase and refinance rates and the best customer service in the industry. Lead by father and son, Robert and Brandon Blue, the Blue Home Loans team is dedicated to finding the most advantageous home loan scenarios for its clients and specializes in home purchase, home refinance, second mortgage and home equity loans. Now, as mortgage rates dip back down to November lows, the company can help clients save even more on their home loans.

A November 20th report from Mortgage News Daily takes a look at the current situation with mortgage rates. It says, “Mortgage rates improved today following weaker economic data in Europe. That data fueled demand in bond markets overnight, pulling US Treasury yields back to yesterday's lowest levels. The mortgage-backed-securities (MBS) that dictate loan pricing take heavy cues from that movement in broader bond markets. The trick is for the daytime hours to cooperate.”

The same article explains that for borrowers to see the benefit of overnight gains in bond markets, these gains need to hold for at least a few hours in the morning. If bonds (most notably MBS) can hold onto these gains, then this will translate into better mortgage rates for the consumers. Whether bond strength continues into the day is usually dependent on the economic data for the day, and as the article points out, today was no exception.

The MND article continues, “While the first round of data didn't do much to threaten bond markets, the 10am data caused quite a bit of volatility. While it did end the good times for today, markets held on to enough of the gains for lenders to avoid issuing 'negative reprices' (where mortgage lenders raise rates in the middle of the day). The most prevalently-quoted conforming 30yr fixed rate remains 4.0% for top tier borrowers. The closing costs associated with that rate are now back in line with those seen on Tuesday, which was the best day in November at the time. 4.125% is still a respectable runner-up, but it at current levels, 3.875% is very close.”

Blue Home Loans explains that while rates were able to recover from yesterday’s slight increase, and are back down to November lows, they are still seemingly trapped in the narrow range that they have been in for quite a while. However, this is not really a bad thing. While, so far this year, California mortgage rates have not gone much lower than where they currently stand, they have not gotten much higher either. Coupled with the fact that a lot of the motivation for rate movement is coming from weakness in European markets, for which recovery does not seem probable in the near future, and it seems that there is a good chance that rates could stay in this range or even go lower.

However, there is also always the possibility that some other factor could cause rates to rise… and quickly! This is why Blue Home Loans always urges mortgage borrowers to be cautious and keep an eye on market conditions (or have a loan officer who will) when looking for the best opportunities to save money on their home loans.

The Blue Home Loans team can help mortgage borrowers to find the best home loan options in California and keep them informed of when the best time to lock in a great mortgage rate would be. This way, borrowers have the option to lock in their rate on application (current rates are quite attractive and not a bad place to be “stuck” at all) or carefully float, with the assurance that their Blue Home Loans mortgage professional is watching mortgage rate trends on their behalf.

The Blue Home Loans website specializes in finding great rates and the best loans for practically anyone who wants to buy or refinance a home. 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 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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