Archives for August 2015

Market turmoil and mortgage rates

In the last few weeks we’ve seen markets around the world selloff and then somewhat rebound.  Bond’s have been one of the few asset classes that have rallied as bond yields have moved down.  However the move down was not huge and so mortgage rates only dipped slightly.   California home loan rates stayed below 4.00% (30 year fixed) which has been the norm since July.  A few lenders dipped down to 3.75% with zero points (for best cast scenarios) however most lenders were at 3.875% and on the 15 year fixed 3.125% (zero points).  Mortgage rates will probably remain in the 3.875%-4.00% range until we hear from the Fed about their plans to raise rates.  Most people believe the Fed will be raising rates at their next meeting.

Mortgage lenders are seeing a modest uptick in volume as August tends to be a slow month as people finish up their summer travel and kids get ready for school.  Mortgage programs like the 30 year fixed and 15 year fixed remain the most sought after mortgage programs.

Mortgage Interest Rate News 08-18-2015

Mortgage interest rates the last few weeks have been a bit on the “boring” side…..which is good news!  After several months of volatility we’re seeing some stability in mortgage rates.  California refinance rates remain in line with the rest of the country in terms of being stable and less volatile. Bond yields have declined the last few weeks while mortgage rates remain steady to slightly lower. Overall mortgage loan volume has declined as we enter the last few weeks before school starts (generally a slow period for mortgage loan origination).

The Fed is expected to raise rates in September so many lenders are being cautious as market reaction is not exactly clear.