California Interest Rates
Interest rates for California home loans tend to be higher, in recent years, then the rest of the country. The traditional programs of a fixed rate home loan or an adjustable rate home loan are available however banks tend to view California as a "risky" market. Because of this view, bond yields tend to be higher for Mortgage Backed Securities (MBS) that posses mortgages that are associated with California property.
Rates can change frequently, sometimes several times a day. The rate movement is dependent upon the the interest rate movements in the Mortgage Backed Securities (MBS) market. The first 6 months of 2008, the MBS has experienced a tremendous amount of volatility and many experts look for that to continue for the next 12-18 months. California interest rates can be tracked on various websites. It is important to find interest rates that are specific to California and not just a "National Average".
Understanding how to best lock in your lowest possible California interest rates is essential. It is always a good idea to obtain at least 3-5 quotes, from different California home loan lenders, each and every time you look to purchase or refinance a home. California interest rates will vary from company to company so be sure to take the time to do your research. Always keep in mind that it is essential you ask the important questions before you pick which company you will work with. From first time home buyers to seasoned real estate professionals, we are always here to help. So if you would like the most up-to-date information on what is happening in the mortgage industry or you would like an interest rate quote, feel free to contact us.
Updates:
Monday's bond market has opened in positive territory following early stock weakness. The stock markets are showing losses with the Dow down 68 points and the Nasdaq down 7 points. The bond market is currently up 16/32, which should improve this morning's mortgage rates by approximately .125 of a discount point.
There is no relevant news scheduled for release today, but there are several important reports due this week that are likely to affect mortgage pricing. The first piece of news comes late tomorrow morning when the Conference Board posts their Consumer Confidence Index (CCI) for July. This index measures consumer sentiment, giving us an idea of consumer willingness to spend. This is important because consumer spending makes up two-thirds of the U.S. economy. If the CCI reading is weaker than expected, we may see bond prices rise and mortgage rates drop tomorrow. Current forecasts are calling for a reading of 50.0, which would be a lightly lower readin g than June's reading.
There is no relevant economic news scheduled for release Wednesday that is relevant to mortgage rates. However, there are two on the schedule for Thursday. The first is the quarterly Gross Domestic Product (GDP), which is considered to be the best indicator of economic growth. It is the sum of all goods and services produced in the U.S. and usually has a great deal of influence on the financial markets. Current forecasts are estimating a 1.8% pace. A larger increase will probably hurt bond prices, leading to higher mortgage rates. But a smaller increase would likely fuel a bond market rally.
The second report of the day is the 2nd Quarter Employment Cost Index (ECI) that measures employers' costs for wages and benefits. It is considered to be an important measurement of wage inflation and can have a pretty big impact on the bond market and mortgage rates. If it shows a rapid increase, raising inflation concerns, the bond market may drop and mortgage rates rise. It is expected to reveal an increase of 0.7%.
Overall, it likely will be a fairly active week in the mortgage market. With several important economic reports on tap, we will likely see noticeable movement in mortgage rates more than one day. The most important day of the week is Friday with the Employment and ISM reports being released, but Thursday's GDP release is highly important to the markets and could heavily influence mortgage pricing also
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Thursday's bond market has opened in positive territory following sizable stock losses and weaker than expected economic news. The Dow is down 110 points and the Nasdaq has lost 16 points. The bond market is currently up 12/32, which should improve this morning's mortgage rates by approximately .250 - .375 of a discount point.
Neither of today's economic releases ere considered to be high importance to the markets unfortunately, or we may have seen more of an improvement to mortgage rates. The National Association of Realtors said that home resales in the U.S. fell 2.6% last month. This was a larger drop than was forecasted. In addition, the Labor Department reported that 406,000 new claims for unemployment benefits were filed last week. This was a much larger increase than was expected and again crosses the important 400,000 benchmark.
Yesterday afternoon's Beige Book release showed that economic activity slowed in most regions and that infla tion continued to rise. The slowing economic activity is good news for bonds, but the inflationary pressures are a threat to bonds and could drive prices lower and mortgage rates higher if they continue to rise. Overall, it didn't reveal any significant surprises.
The results of today's 5-year Treasury Note auction will be posted at 1:00 PM ET. If the auction was met with a strong demand from investors, bond prices may rise during afternoon trading and could lead to lower mortgage rates. However, if the sale was met with a poor demand, we could see bond prices fall and mortgage rates rise revise higher.
Tomorrow morning brings us the release of two of the week's most important reports. The first will come from the Commerce Department when they will post June's Durable Goods Orders at 8:30 AM ET. Current forecasts are currently calling for a decline of 0.3% after showing little change in new orders during May. This data gives us an indication of manu facturing sector strength by tracking orders at U.S. factories for big-ticket items. These are products that are expected to last at least three years. A stronger than expected number may lead to higher mortgage rates tomorrow morning. If it reveals a larger than expected drop, mortgage rates should improve tomorrow.
Also being released tomorrow is the final revision to July's University of Michigan Index of Consumer Sentiment. Unless we see a drastic revision to the preliminary estimate of 56.6, I think the markets will probably shrug this news off.
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Wednesday's bond market has opened in negative territory since there is no relevant economic data to offset early stock gains. The stock markets are in positive territory with the Dow up 24 points and the Nasdaq up 18 points. The bond market is currently down 13/32, which will likely push this morning's mortgage rates higher by approximately .250 of a discount point.
There is no relevant economic data scheduled for release this morning, however, the Federal Reserve will release its Beige Book report this afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when determining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. With Fed Chairman Ben Bernanke's testimony last week, I don't think we will see any significant surprises in this report, and therefore will likely not cause much movement in mortgage rates later today.
There are two housing sector related releases scheduled for this week with the first coming tomorrow morning. Neither will likely have much of an impact on the bond market or mortgage rates. June's Existing Home Sales will be posted tomorrow morning and is expected to show a decline in sales.
We also have a 5-year Treasury Note auction Thursday that may influence bond trading but will also give us an indication of investor appetite for bonds. If it is met with a strong demand from investors, bond prices may rise during afternoon trading. However, if the sale was met with a poor demand, we could see bond prices fall and mortgage rates rise late tomorrow.
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Tuesday's bond market has opened in negative territory as investors remain concerned about inflation sensitive securities. The stock markets are mixed with the Dow up 34 points and the Nasdaq down 4 points. The bond market is currently down 13/32, but due to strength in bonds late yesterday we will likely see little change in this morning's mortgage rates.
There is no relevant economic data scheduled for release today or tomorrow morning. This will leave the bond market and mortgage rates to be influenced by stock and oil prices. This could further pressure bonds in my opinion, so please proceed cautiously if still floating an interest rate. I would not be surprised to see an upward revision to mortgage pricing later today if bonds remain near current levels.
The Federal Reserve will release its Beige Book report tomorrow afternoon. This report is named simply after the color of its cover, but it is considered to be important to the Fed when de termining monetary policy during their FOMC meetings. It details economic activity and conditions by region throughout the U.S. With Fed Chairman Ben Bernanke's testimony last week, I don't think we will see any significant surprises in this report, and therefore will likely not cause much movement in mortgage rates tomorrow afternoon.
There are two housing sector related releases scheduled for Thursday and Friday, but I don't think they will have much of an impact on the bond market or mortgage rates. June's Existing Home Sales will be posted Thursday while New Home Sales will be released Friday. I would expect that other reports or factors will drive bond trading and mortgage pricing much more than these will.
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Friday's bond market has opened well in negative territory as investors continue to shy away from inflation-threatened securities. The stock markets are mixed during morning trading with the Dow up 38 points and the Nasdaq down 23 points. The bond market is currently down 21/32, which will likely push this morning's mortgage rates higher by another .375 of a discount point.
There is no relevant economic data scheduled for release today, but this morning's bond losses don't come as a surprise. It appears that the sentiment in the bond market has turned more pessimistic than optimistic, partly due to inflation concerns. That has led to bonds and long-term securities becoming of less interest to investors. The result is bond prices falling as they are sold and mortgage rates rising. Unfortunately, I am not so sure that this is the end of the selling, so please be careful if still floating an interest rate.
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