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.