After falling below 4% for a 30 Year Fixed (the lowest on record), California Mortgage rates have started to climb up. For 6 days in a row Mortgage Backed Securities have gone down in value, thus increasing the Mortgage Rates.
Last week Freddie Mac released it’s weekly survey quoting the 30 Year Fixed National Average rate at 3.94% with 0.8 points and usual closing costs. However, in the latest Mortgage Bankers Association Data released this morning, the 30 Year Fixed loans for Conforming Mortgages (loan amounts under $417k) is being quoted at 4.25% and between $417,001 to $625,500 is being quoted at 4.59%. Quite a sharp jump.
The 10 Year Treasury, usually an indicator of Mortgage rates very recently touched the lows of 1.67%. Now it stands at 2.22% and most likely headed to 2.3%. It has now increased for 6 trading sessions in a row. The 10 Year Treasury and Mortgage Backed Securities have become bearish because the equity markets continue to rally due to improved outlook on Europe.
Outlook for California Mortgage Rates:
The 10 Year Treasury may find support at this level and the mortgage rates may hold on to the current levels for next 2 weeks. Intra-day volatility is not ruled out and hence if you get any improvements in mortgage rates on any given day, I suggest you should lock it. Work with a lender who tracks the Mortgage backed Securities market live and suggests you accurately on when to lock.
If you are looking to refinance or are planning to make an offer on a house, contact me and I can help you evaluate different loan programs and interest rate options.
You may also like to watch: A Video on How Mortgage Rates Move