Mortgage Interest Rates Decline Slightly Last Week, New Lows Expected

September 26, 2011 (Shirley Allen)

Mortgage interest rates declined slightly last week with the 5/1 ARM hitting yet another record low and the latest economic actions taken by the Fed could lead to even lower mortgage rates in the coming weeks and months according to the data collected by LendingTree’s Weekly Mortgage Rate Pulse.

With the announcement by the Federal Reserve of its latest economic plan to bolster the sagging economy, mortgage interest rates are expected to hit or remain at record lows in the coming weeks and months. The Fed’s plan is to essentially swap $400 billion in short term debt for the same amount in long term debt with the anticipated affect of lowering Treasury Bond yields, which mortgage interest rates generally follow.

The day after the Fed announced its new plan, 10-year Treasury yields fell to record lows which could lead to some pretty favorable reports concerning interest rates later in the week, especially if you’re looking to refinance.

Fixed Rate Mortgages as of September 20, 2011:

The average home loan rates offered for 30 year fixed rate mortgages was 4.34 percent (4.56% APR), which was down from 4.37 percent the previous week.

The lowest mortgage rate offered for a 30 year fixed rate mortgage was 3.75 percent (3.88% APR), which was unchanged from the rate offered the week before.

The average home loan rates offered for 15 year fixed rate mortgages was 3.59 percent (3.87% APR), down from 3.61 percent reported the previous week

The lowest mortgage rate offered for a 15 year fixed rate mortgage was 2.875 percent (3.11% APR), which also remained unchanged from the week before.

Adjustable Rate Mortgages as of September 20, 2011:

The average home loan rate offered for 5/1 adjustable rate mortgages was 3.24 percent (3.50% APR), which was down from 3.34 percent reported last week.

The lowest mortgage rate offered for a 5/1 adjustable rate mortgage was 2.375 percent (3.04% APR), which was down from 2.5 percent the week before.

See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders, average loan-to-value ratio and percentage of consumers with negative equity:

STATE-BY-STATE MORTGAGE DATA 9/20/11

*Updated Quarterly

STATE

LOWEST MORTGAGE RATE

LOAN-TO-VALUE RATIO*

NEGATIVE EQUITY*

US Average

3.75% (3.88% APR)

69.8%

33.5%

Alabama

3.75% (3.88% APR)

68.0%

29.5%

Alaska

3.88% (4.00% APR)

65.8%

19.5%

Arizona

3.75% (3.88% APR)

93.1%

38.9%

Arkansas

3.88% (3.99% APR)

72.3%

43.0%

California

3.88% (4.00% APR)

70.0%

34.4%

Colorado

3.75% (3.88% APR)

72.3%

22.9%

Connecticut

3.75% (3.87% APR)

60.2%

43.4%

Delaware

3.75% (3.84% APR)

67.3%

38.8%

District of Columbia

3.75% (3.88% APR)

58.6%

26.8%

Florida

3.75% (3.88% APR)

87.8%

38.9%

Georgia

3.88% (4.00% APR)

80.9%

26.5%

Hawaii

4.00% (4.12% APR)

53.9%

27.0%

Idaho

3.75% (3.88% APR)

71.7%

30.3%

Illinois

3.88% (4.00% APR)

72.4%

32.3%

Indiana

3.75% (3.85% APR)

69.4%

28.4%

Iowa

4.38% (4.51% APR)

67.3%

44.2%

Kansas

4.38% (4.51% APR)

70.3%

32.2%

Kentucky

3.75% (3.88% APR)

67.9%

52.7%

Louisiana

4.38% (4.51% APR)

75.2%

82.4%

Maine

3.88% (3.99% APR)

58.3%

30.7%

Maryland

3.75% (3.84% APR)

70.3%

25.9%

Massachusetts

3.88% (4.00% APR)

61.9%

47.0%

Michigan

3.88% (4.00% APR)

84.0%

33.4%

Minnesota

3.75% (3.85% APR)

66.8%

22.7%

Mississippi

4.38% (4.51% APR)

78.2%

29.2%

Missouri

3.88% (4.00% APR)

71.9%

32.4%

Montana

4.38% (4.51% APR)

60.3%

33.9%

Nebraska

4.38% (4.51% APR)

73.4%

44.7%

Nevada

3.88% (4.00% APR)

112.7%

53.7%

New Hampshire

3.88% (3.99% APR)

70.3%

26.2%

New Jersey

3.75% (3.84% APR)

62.8%

29.9%

New Mexico

3.75% (3.88% APR)

67.9%

45.9%

New York

3.75% (3.85% APR)

48.7%

36.0%

North Carolina

3.75% (3.88% APR)

71.6%

32.4%

North Dakota

4.38% (4.51% APR)

61.1%

36.3%

Ohio

3.88% (4.00% APR)

75.8%

27.5%

Oklahoma

3.88% (3.99% APR)

71.8%

50.6%

Oregon

3.88% (4.03% APR)

69.8%

19.9%

Pennsylvania

3.75% (3.84% APR)

61.1%

42.0%

Rhode Island

4.38% (4.51% APR)

63.7%

38.7%

South Carolina

3.88% (4.00% APR)

71.5%

28.9%

South Dakota

3.88% (3.99% APR)

N/A

N/A

Tennessee

3.88% (4.00% APR)

71.6%

29.9%

Texas

3.88% (4.00% APR)

68.1%

31.6%

Utah

3.88% (4.00% APR)

72.9%

22.8%

Vermont

4.38% (4.51% APR)

N/A

N/A

Virginia

3.75% (3.85% APR)

71.7%

25.1%

Washington

3.88% (4.00% APR)

68.3%

21.7%

West Virginia

4.38% (4.51% APR)

66.8%

50.6%

Wisconsin

4.38% (4.51% APR)

69.1%

36.0%

Wyoming

3.88% (4.01% APR)

63.1%

24.2%

Lowest mortgage interest rates shown reflect the payment of one discount point. Mortgage interest rates will vary based on the borrower’s loan details and credit profile.

Source:

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