California Mortgage Rates Edged Up Again Last Week

30 Year Fixed and 15 Year Fixed Mortgage Rates continue to edge up for California Refinance and Home Purchase borrowers. In the latest Freddie Mac survey, the 30 Year Fixed rates are at 3.41% with 0.7 points up from 3.37% last week. The 15 Year Fixed rates are at 2.72% with 0.6 points, up from 2.66%. Adjustable rate mortgages (ARM) remained the same as last week. BankRate.com reported a 3.47% rate for 30 Year Fixed Mortgage and 2.85% for 15 Year Fixed Mortgage. Note that these average rates are for conforming mortgage loans…continue reading →

Average 30 Year Fixed Mortgage Rates Continue To Be Under 3.5%

Both Freddie Mac and BankRate.com in its latest survey announced that the average 30 Year Fixed mortgage rates continue to be under 3.5%. While Freddie Mac reported a rate of 3.37% with 0.7 in points, BankRate.com reported 3.46%. Per Freddie Mac, rates went down 3 basis points from last week while Bankrate.com rates actually went up from last week. In my own experience as a Loan Officer, I have seen rates going up from last week, so the Bankrate.com survey to me looks more accurate. Note that these surveys are for loan amounts…continue reading →

How to De-mystify Mortgage Rate and Become a Better Rate Shopper

Shopping for the best Mortgage rate possible has always been the primary objective when borrowing a home loan. As well it should be! The challenge with this strategy is that there is much misleading information released on the subject by various media. Internet websites and email marketing, along with other media such as radio, television, and billboard advertising, have brought the importance of interest rates to the forefront of consumers' minds. Bait and Switch Technique The problem with this type of marketing is that it is designed to make the lender's phone ring.…continue reading →

Low Housing Inventory, Low California Mortgage rates: What should prospective buyers do?

Fixed term mortgage rates have broken another record low period. While on the rate side, this is great news for consumers wishing to buy a new home, it does not sound as appealing when taking into stock the low homes for sale inventory in California. The other dampener in the deal is the stringent lending criterion which makes getting a mortgage tough in today's market. What's up with the California mortgage rate? Per Mortgage News Daily.com, the 30-year fixed-rate mortgage is at 3.31% today vs 3.33% yesterday. FHA 30 yr Fixed rate, remains…continue reading →

Will Fed’s Effort to Lower Mortgage Rates Boost Housing and Economy?

Fed's announcement last week is aimed at keeping mortgage rates low for a long time and spur housing and economy. The trillion dollar question is - will it actually achieve that aim? It sure faces a lot of hurdles. (By the way if you missed Fed's announcement, Read the news here reported on this site.) The Fed's $1.25 trillion of mortgage bond purchases that ended in March 2010, is widely believed to have substantially brought the mortgage rates down. According to Mahesh Swaminathan, Senior Mortgage Strategist at Credit Suisse, the new action by…continue reading →

Breaking News – California Mortgage Rates Sink After Fed Announcement

Ben is at it again. Guns Blazing, Fed announced they are all in for as long it takes. Earlier this morning Fed made the statement that they would buy $40 billion each month of agency mortgage-backed securities on an open end basis. Fed would even extend those purchases and buy additional assets if the job market doesn't improve.  I know you are going like "Shashank - thats too much technical stuff. What does that really mean to me?". Well one sentence answer - a much better mortgage rate. Lets see how it works.…continue reading →

California Mortgage Loans to become more expensive – Courtesy of G-Fees

FHFA (Federal Housing Financial Agency) recently announced increase in Guaranteed Fees (aka G-Fees) for all Conforming Fannie Mae and Freddie Mac loans originated in California and rest of the country. Let's try to understand what the G-Fees is and how does it impact you. G-Fees defined (From Fannie Mae website) A guaranty fee, also referred to as a “g-fee, is one of the costs reflected in the interest rate on a single-family mortgage loan. This fee represents the charge by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac to guarantee that an…continue reading →

How will the Fed Announcement Impact California Mortgage Rates?

Fed chairman Ben Bernanke strongly defended the Fed $2.3 trillion in bond purchases since 2008, strengthening the case for another quantitative easing. He claimed it has helped create more than 2 million jobs and he was considering another installment. Top Fed officials believe that such programs help drive down long-term interest rates in California and rest of the country. The actual announcement is expected on Fed's next policy meeting scheduled on on Sept 12 and 13. Get a Live Mortgage Rate Quote Mortgage Markets reacted favorably to his statement with Fannie Mae 3.0%…continue reading →

California Mortgage Rates for Refinance and Purchase Jump to 2 Month High

California Mortgage Rates for both Refinance and Home Purchase are now at a 2 month high - at their worst levels since early June. Freddie Mac today in its Primary Mortgage Market Survey announced that in the week ending Aug 16th, the 30 Year Fixed Rates climbed to 3.62%, 15 Year Fixed Mortgage to 2.88% and 5 Year Adjustable Rate Mortgage (ARM) to 2.76%. All these rates are with 0.6% points and standard closing cost. So on a $400k loan in California, that could be a total closing cost of approximately $5000. Also,…continue reading →

California Mortgage Rates Jump .25% in 2 days

California Mortgage Rates for Refinance and Home Purchase loans are up .25% in 2 days and are hitting a 6 months high. On Tuesday, it was like as if the dam broke. After the rates have remained stable and under 4% for a solid 6 months - you could see it was coming. Mortgage Backed Securities (MBS) were hit hard on Tuesday and by end of Wednesday they had fallen a dramatic 100+ basis points. Fall in MBS prices mean less demand for them and higher mortgage rates. For four months the MBS…continue reading →