Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Sales-Chart-272x300According to Mortgage Bankers Association’s (MBA) weekly mortgage application survey, mortgage rates for California borrowers (and rest of the country) increased for the week ending December 14, 2012 from the last week. The mortgage rates increased for 30 year fixed mortgages for both conforming and FHA loans. To make matters worse points (also called origination fee) increased as well. However, the rates for 15 year fixed mortgages went down slightly.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.50% from 3.47%, with points increasing to 0.44 from 0.36 (including the origination fee) for 80% loans. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.34% from 3.32%, with points increasing to 0.54 from 0.51 (including the origination fee) for 80% loans. The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.83%, the lowest rate in the history of the survey, from 2.85%, with points remaining unchanged at 0.26 (including the origination fee) for 80% loans.

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Outlook For California Mortgage Rates:

For next two-three weeks mortgage rates could stay where they are and in all likelihood may even worsen from here. There are several factors for mortgage rates worsening in last few days:

Since these factors won’t change in next few weeks, the money market managers would continue to buy more stocks. Thus taking money away from Treasury and mortgage bonds. When that happens, it results in mortgage rates getting worse. Watch the video on how mortgage rates move. If you are shopping for mortgage rates, I would recommend locking the rate on the day market improves. We track the markets on a daily basis so that we can advise our clients on best days to lock or float the rate. We can do the same for you – give us a call.

Click here to get a live rate quote for a mortgage in CA, WA and OR