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.

Both 30 Year Fixed and 5 Year ARM mortgage rates for California Refinance and Home Purchase are at their lowest level for 2011 after declining for the fourth consecutive week. Freddie Mac reported last week that the 30-year fixed-rate averaged 4.63%, 5 Year ARM averaged 3.41% and the 15-year fixed averaged 3.82%.

30-year fixed-rate mortgage averaged 4.63 percent with an average 0.7 point for the week ending May 12, 2011, down from last week when it averaged 4.71 percent. 5-year adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.6 point, down from last week when it averaged 3.47 percent.>

Note that these rates are for conforming loan amounts $417,000 or lower. Rates for loan amounts between $417,001 to $729,750 are usually .125% to .25% higher.


What is causing these low California Mortgage Rates?

Weaker economic data reports in last 2-3 weeks reduced Treasury bond yields and allowed mortgage rates to drift lower for the fourth consecutive week. This is what happened to some major economic data:

  • The unemployment rate rose to 9.0 percent from 8.8 percent in March and was the highest reading since January. In addition, wages grew by only 0.1 percent, which was below the market consensus forecast.
  • Real economic growth in the first quarter fell short of the market consensus forecast and represented the slowest pace since the second quarter of 2010.
  • Both the manufacturing and service sectors exhibited growth at a slower rate in April.

Outlook for California Mortgage Rates:

There are no Treasury auctions this week, back to economic reports that will set the pace. Although interest rates are seemingly stuck at the present levels, the outlook remains positive for interest rates staying low as long as the equity markets, the dollar and commodity prices trade soft.

We expect most markets to be volatile this week with prices of interest rates, stocks, and all commodities swinging day to day. If however, crude oil resumes its run higher the bond and mortgage markets will likely struggle and come under some selling pressure. That could mean slight uptick in California mortgage rates.

If you are looking buy or Refinance a California home, complete the rate quote request on the sidebar or contact me at 408.615.0655 or [email protected].

Get a crash course in What impacts mortgage rates. watch the Video here.

Related Posts

  • 96
    30 Year Fixed, 15 Year Fixed and 5/1 ARM California Mortgage Interest Rates continue to rise.According to Freddie Mac Primary Mortgage Market Survey® both long- and short-term mortgage rates rose last week too. 30-year fixed-rate mortgage (FRM) averaged 5.05 percent with an average 0.7 point for the week ending February…
    Tags: mortgage, rates, week, percent, year, averaged, california, interest
  • 94
    The last three weeks delivered increasing mortgage rates and the coming week is shaping up to be a repeat. What's behind this negative break from the summer doldrums rates have languished in is a steady sign that inflation is substantially above the Feds target of 2%. The latest CPI 4-week…
    Tags: rates, mortgage, week, rate, interest, percent, year
  • 94
    Yesterday the Fed released the Beige Book which contained an even stronger emphasis on the impact of tariffs and labor shortages than the previous two publications. Along with that, all twelve districts in the U.S. said the economy is expanding moderately or at a moderate pace in their region. The…
    Tags: rates, mortgage, interest, rate, percent, week, year
  • 94
    Most of the economic data released this week has been in line with predictions and expectations resulting in a little to no impact on the long-term bond market, which has a direct effect on mortgage rates. Mortgage Backed Securities (MBS) reacted negatively yesterday to two factors: oil moving above $71/barrel,…
    Tags: rates, mortgage, rate, week, percent, interest, year
  • 94
    This week's news has had little impact on mortgage rates.  Trade war concerns shifted from steel and aluminum tariffs to China's history of piracy issues in technology and intellectual property. The majority of the media commentary is around the appointment of Larry Kudlow as White House economic advisor. Kudlow has…
    Tags: mortgage, rate, rates, week, percent, interest, year