Mortgage Rates Slightly Higher After Yesterday’s Bond Rally – Still Near 20 Month Lows

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

Mortgage rates drifted slightly higher today after markets underwent a correction from the past few days’ rally. However, mortgage rates are still near 20 month lows and actually at their best levels in that time frame aside from the last two days. California full-service mortgage company, Blue Home Loans, Inc., has been helping clients to gain the maximum amount of savings on their home loans for many years and now takes a look a the recent mortgage rate trends and gives some advice for those who have home loan plans for the near future.

The California home loan company takes a look at the January 16th, 2015 report from real estate news website, Mortgage News Daily, which says, “Mortgage rates pulled back to slightly higher levels today as broader markets underwent a correction from relatively frenzied movement over the past few days. Yesterday we discussed how mortgage rates have a hard time keeping pace with interest rate benchmarks (like Treasuries) when the latter are moving lower much more quickly than normal. The other side of that coin is that mortgages tend to hold their ground better when those benchmarks are moving quickly in the opposite direction. That's what happened today.”

That same article explains, “The net effect was a moderately weaker day that left 3.625% intact as the most prevalently-quoted conforming 30yr fixed rate for top-tier scenarios. As of yesterday, 3.5% had been gaining some ground, but lost just as much today. Also worth keeping in mind is the fact that volatility typically results in lenders being much more stratified. In other words, what's true for one lender (or even 'on average') in terms of how their rate sheet changed from yesterday or during the day, may not even be remotely true for another. For the sake of perspective, it's important to remember that, apart from the past 2 days, today's rates are still the best in over 20 months. While that's no guarantee that rates couldn't move higher next week, it does mean that this was a winning week despite today's specific defeat.”

Blue Home Loans explains that this setback is not necessarily the start of a turnaround for rates and, in fact, there is still a good chance that rates could get lower in the coming weeks. However, as always, those who are looking for the lowest mortgage interest rates need to be very cautious, as there is always a chance of something unexpected causing rates to take a turn for the worse at any minute. Right now, sentiment seems to lean towards lower rates for the near future – but this is assuming that the Swiss Central-bank's surprise move yesterday was a portent of a decision by the ECB to implement some sort of QE program.

For now, there is no way to tell where rates will head from here, and with a three-day weekend ahead there is plenty of time for things to happen before financial markets get things moving again next week. Those who have been planning on starting a new home loan will want to be prepared to apply as soon as they can, and whether rates improve or worsen on Tuesday they will be ready to either lock in on application or at least have their loan in process so that they can float and lock quickly if rates improve later on or circumstances make continuing to float too risky.

California borrowers who want to be sure that they benefit from the best California mortgage rates in 2015 will find that they can count on the mortgage experts at Blue Home Loans, Inc. 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

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