Mortgage Rates Fall in Response to European Debt Crisis

November 2, 2011 (Shirley Allen)

Uncertainty over the European debt crisis resulted in a large drop in Treasury yields yesterday and mortgage rates followed the yields down by an average of 20 basis points according to the data collected by LendingTree’s Weekly Mortgage Rate Pulse.

The continuing unresolved debt crisis in Europe has created turmoil in global markets which has resulted in market volatility. During times of uncertainty investors rush to the safety of Treasury bonds which usually results in lower yields which also brings down mortgage interest rates. Borrowers or those seeking to refinance can take advantage of these dips but as history has shown, they are likely to be only temporary.

Fixed Rate Mortgages as of November 1, 2011:

The average home loan rates offered for 30 year fixed rate mortgages decreased this week to 4.30 percent (4.58% APR). The average home loan rate offered last week was 4.48 percent.

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

The average home loan rates offered for 15 year fixed rate mortgages also decreased this week to 3.67 percent (4.13% APR). The average home loan rate offered last week was 3.88 percent.

The lowest mortgage rate offered for a 15 year fixed rate mortgage was 3.00 percent (3.23% APR), which was down from 3.25 percent the week before.

Adjustable Rate Mortgages as of November 1, 2011:

The average home loan rate offered for 5/1 adjustable rate mortgages decreased this week to 3.24 percent (3.66% APR). The average home loan rate offered last week was 3.49 percent.

The lowest mortgage rate offered for a 5/1 adjustable rate mortgage was 2.50 percent (3.03% APR), which was unchanged from 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 11/1/11

*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

3.75% (3.88% APR)

65.8%

19.5%

Arizona

3.75% (3.88% APR)

93.1%

38.9%

Arkansas

3.75% (3.86% APR)

72.3%

43.0%

California

3.75% (3.88% APR)

70.0%

34.4%

Colorado

3.75% (3.88% APR)

72.3%

22.9%

Connecticut

3.75% (3.85% APR)

60.2%

43.4%

Delaware

3.75% (3.85% APR)

67.3%

38.8%

District of Columbia

3.75% (3.88% APR)

58.6%

26.8%

Florida

3.63% (3.73% APR)

87.8%

38.9%

Georgia

3.75% (3.88% APR)

80.9%

26.5%

Hawaii

3.88% (4.00% APR)

53.9%

27.0%

Idaho

3.75% (3.88% APR)

71.7%

30.3%

Illinois

3.75% (3.86% APR)

72.4%

32.3%

Indiana

3.75% (3.93% APR)

69.4%

28.4%

Iowa

3.75% (3.88% APR)

67.3%

44.2%

Kansas

3.75% (3.88% APR)

70.3%

32.2%

Kentucky

3.75% (3.89% APR)

67.9%

52.7%

Louisiana

3.75% (3.88% APR)

75.2%

82.4%

Maine

3.75% (3.86% APR)

58.3%

30.7%

Maryland

3.75% (3.84% APR)

70.3%

25.9%

Massachusetts

3.75% (3.86% APR)

61.9%

47.0%

Michigan

3.75% (3.88% APR)

84.0%

33.4%

Minnesota

3.75% (3.85% APR)

66.8%

22.7%

Mississippi

3.75% (3.87% APR)

78.2%

29.2%

Missouri

3.75% (3.88% APR)

71.9%

32.4%

Montana

3.75% (3.88% APR)

60.3%

33.9%

Nebraska

3.75% (3.88% APR)

73.4%

44.7%

Nevada

3.63% (3.75% APR)

112.7%

53.7%

New Hampshire

3.88% (3.99% APR)

70.3%

26.2%

New Jersey

3.75% (3.87% 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% (4.88% APR)

71.6%

32.4%

North Dakota

3.75% (3.88% APR)

61.1%

36.3%

Ohio

3.75% (3.86% APR)

75.8%

27.5%

Oklahoma

3.75% (3.86% APR)

71.8%

50.6%

Oregon

3.75% (3.88% APR)

69.8%

19.9%

Pennsylvania

3.75% (3.84% APR)

61.1%

42.0%

Rhode Island

3.75% (3.87% APR)

63.7%

38.7%

South Carolina

3.75% (3.86% APR)

71.5%

28.9%

South Dakota

3.75% (3.86% APR)

N/A

N/A

Tennessee

3.75% (3.89% APR)

71.6%

29.9%

Texas

3.75% (3.88% APR)

68.1%

31.6%

Utah

3.75% (3.88% APR)

72.9%

22.8%

Vermont

3.75% (3.88% APR)

N/A

N/A

Virginia

3.75% (3.85% APR)

71.7%

25.1%

Washington

3.75% (3.88% APR)

68.3%

21.7%

West Virginia

3.75% (3.85% APR)

66.8%

50.6%

Wisconsin

3.75% (3.85% APR)

69.1%

36.0%

Wyoming

3.75% (3.88% 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:

Tags: lendingtree, mortgage rates, mortgage loans, average home rates, 30 year fixed, 15 year fixed, 5/1 arm, adjustable rate mortgage, fixed mortgage, lenders