Mortgage Rates Move Up Again After Fed Chair’s Testimony To The Senate Banking Committee

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California mortgage company, Blue Home Loans, Inc., comments on the current mortgage rates trends and offers advice for those who are seeking the best home loans.

The semi-annual testimony to the Senate Banking Committee by Fed Chair Janet Yellen yesterday morning has resulted in further increases for mortgage rates. Last week saw rates reach their lowest levels of the month, but the beginning of this week showed a reversal to that trend, and this new upward movement just strengthens the move away from July lows. Blue Home Loans, Inc., a California-based full service mortgage company that has been helping CA residents find the best rates and loans available for many years, has been keeping track of these recent mortgage rates trends and now comments on the current situation and offers some advice for those who are not sure how to proceed with their home loan plans.

A July 16th report from Mortgage News Daily gives some further insight into the current situation. It says, “Mortgage rates moved slightly higher again today. Fed Chair Janet Yellen provided her semi-annual testimony to the Senate Banking Committee this morning. The financial markets that underlie mortgage rates saw quite a bit of volatility during the testimony, but it ultimately canceled itself out. This left the secondary mortgage market in roughly the same position as it was earlier in the morning. Unfortunately, that position was a bit weaker than yesterday's latest levels which were, themselves, the weakest of the day.”

The same article further explains, “In other words, after the smoke cleared, today's market movements confirmed yesterday's weakness, pushing rates higher. That said, none of the recent movement in mortgage rates could be considered "fast-paced." Today's increase just barely begins pushing the boundary between 4.25% and 4.125%. By the end of last week 4.125% was more prevalent as a conforming 30yr fixed rate quote for the best possible scenarios. After these past two days of weakness, 4.25% is more prevalent than it was, but hasn't taken the spotlight yet.”

Blue Home Loans explains that yesterday’s increase did not move rates higher than the recent range. There has been a lot of talk about this narrow range, and it seems like there will need to be some pretty major circumstances to push rates out of it. Looking ahead, there do not seem to be any major factors that could influence rates one way or the other in a big way. Because of this, the best advice for most borrowers who are deciding whether to lock or float is to float when rates are near the top of the range and lock when they are at the bottom.

Of course those who have shorter lock periods may not have the ability to wait for rates to go back down, in which case locking in might be the best option. Rates are still quite low, although higher than last week, so they can be assured that they will not lose out too much. Those who are just starting their loan process should take the time to find the best loan scenario for their situation. With predictions of rising rates going towards 2015, getting a good loan program now may mean the difference between spending or saving thousands of dollars on a home loan.

Blue Home Loans can help California borrowers who are looking for the best rates, lenders and loan programs to find exactly what they need so that they can take advantage of today’s lowest mortgage rates and save money on their loans. 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 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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