San Diego, CA (PRWEB) January 01, 2015
The last day of 2014 saw rate levels move marginally higher, but despite the small increase mortgage rates were near the lowest levels of the year to end 2014. California full-service mortgage company, Blue Home Loans, Inc., has been helping clients to gain the maximum amount of savings on their home loans and now takes a look a the recent mortgage rate trends and gives some advice for those who have home loan plans for 2015.
The mortgage company reviews the December 31st report from real estates news website, Mortgage News Daily, which says, “Mortgage rates drifted just slightly higher today amid extra quiet trading conditions. Bond markets (which include the mortgage-backed-securities that dictate mortgage rates) close early today and are fully closed tomorrow for the New Years holiday. Banks and mortgage lenders will also be closed, but almost all will be open on Friday. Keep in mind that when banks are closed, lenders don't release new rate sheets and mortgages can't be locked.”
The article continues, saying, “As for today's movement, it does little to change the bigger picture. Top tier scenarios are still easily in the high 3's with 3.875% being the most prevalently-quoted conforming 30yr fixed. That's unchanged from yesterday. Because of that "higher rates" refers to the modestly higher closing costs associated with prevailing rates. In other words, the NOTE rate would be the same and the EFFECTIVE rate is microscopically higher. Expressed in terms of effective rate, the increase is 0.01%.”
The MND article explains that the slight increase still leaves mortgage rates near the lowest levels of the year to end 2014, a remarkable feat considering that the consensus was for mortgage rates to move much higher last year due to the Fed’s bond buying taper. However, it appears that the market reaction to this news in 2013 actually did a decent job of accounting for the future event. The article explains,
“By the time the Fed finally began the tapering process, that variable was removed from the equation and rates calmed down and drifted sideways until the next major source of inspiration showed up. For 2014, that would certainly be European growth/inflation/QE considerations. April and May marked a turning point where markets began to consider that Europe might be too big a drag for US rates. Until then, it was unclear if rates would resume their upward trend.”
Blue Home Loans explains that European market considerations then took center stage in early 2014, and even at the end of the year, mortgage rates have been closely following Eurozone drama and benefiting from it. Whether this trend will continue very long into the new year is anyone’s guess, but the California mortgage company urges caution along with guarded optimism for borrowers, since the Fed has announced that they will finally raise their rates from near zero sometime in mid-2015, and markets will likely start pricing this in sometime before it actually happens.
For those who have home loan plans for the near future, Blue Home Loans' advice is that Monday will be the first real glimpse of what mortgage rate levels should be like after the end of the holiday season, seeing the return of normal market participation. If rates remain at current levels, or even move lower, that could be a sign of good things to come. Those who have not yet applied for a home loan will want to do so as soon as possible so that they will be able to lock in any potential gains or cautiously float if mortgage rates seem like they could improve further.
California borrowers who want to be sure that they benefit from the best California mortgage rates will find that they can count on the mortgage experts at Blue Home Loans 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