Bank Mortgage Rates Reach New Lows January 2, 2012

Mortgage rates hit new lows with all of the most popular mortgage programs costing consumers less by the end of the week.  Mortgage rates came out of the gate at near record levels and improved slowly but steadily throughout the week.  By the time the week came to a close, the slow but steady rate improvements led to a week with mortgage interest rates moving measurably lower. 

Mortgage bond trading volume, on which bank mortgage rates are based, remained very light due to the holiday shortened trading sessions.  In addition to low volume due to the holidays, economic data and market news was very light as well further capping mortgage bond trading activity.  Low volume in bond trading often exaggerates the movements in prices as fewer traders with big sales or purchases can make big impact on the price of the bonds and hence the interest rates on which they are based.  

In the current mortgage rates survey, the average 30 year mortgage rate moved below 4.00 percent.  30 year mortgage rates showed a drop of 17 basis points on the week.  One basis point is equal to 1/100th of a percent.  The average rate on a 30 year mortgage loan from the nation’s top five bank mortgage lenders came in at 3.950 percent.  The 30 year rate sat at 4.125 percent in the prior week’s rate survey.

FHA home loans started the already under 4.00 percent but the top bank mortgage lenders still managed to squeeze out a reduction in the average interest rate offered.  The average rate promoted on a 30 year fixed rate FHA mortgage was cheaper by five basis points.  The 30 year FHA mortgage rate this week slipped to 3.925 percent from 3.975 percent in the previous week.

The 15 year rate took the middle ground between the rate reductions in the 30 year fixed and 30 year FHA loan by falling 7.5 basis points this week.  The average 15 year home loan had an interest rate of 3.275 percent, down from last week’s average loan rate of 3.350 percent.

Mortgage rates offered by the top five bank mortgage lenders in the weekly survey includes the following 30 year mortgage interest rates, points charged and resulting APRs as of December 30, 2011:

The nation’s biggest bank, Chase Bank, has the 30 year mortgage rate at 3.875% and 0.500 points for an APR of 3.978%. 

The number two bank mortgage lender, Bank of America, has the 30 year mortgage rate at 4.000% with 0.875 points with a 4.160% APR.

Wells Fargo dropped their rates significantly during the prior week and has left that rate alone this week with the 30 year mortgage rate form Wells sitting at 3.875% with 1.0 point and a 4.025% APR.

US Bank mortgage rate for the 30 year loan dipped to 3.875% with zero points and an APR of 3.937%.

Citibank made a minor cut in their 30 year term home loan with the interest rate being cut to 4.125% with 0.250 points and an APR of 4.209%.

The mortgage interest rates, loan points and mortgage loan APRs in the Findlocalmortgagerates.com survey are retrieved directly from the bank mortgage lenders on or after December 30, 2011.  All of the bank mortgage rates listed are subject to change at any time.  All home loans are subject to the approval and underwriting standards established by each of the individual mortgage lenders.

The mortgage rates and mortgage costs in the survey are based on a mortgage loan request for a single family purchase based in California with a loan amount of $250,000.00 and a 20% down payment on or after December 30, 2011. 

Additional mortgage interest rates and home loan products are available from the listed bank mortgage lenders including mortgage rates in Illinois, mortgage loans and mortgage rates in Louisiana, mortgage loans and mortgage rates in Maine, mortgage loans and mortgage rates in New York and similar regional home loans and mortgage rates.