Top Bank Mortgage Lender Rates Drop September 26, 2011
Bank mortgage rates came tumbling down this week thanks to a variety of economic factors. A flight to U.S Treasury securities and mortgage backed securities drove interest rates down as a result of a stagnant U.S. economy, the crisis over excessive debt in some European nations and the Federal Reserve Board decision to keep reinvesting maturing securities into new mortgage backed securities.
Of the three big factors pushing mortgage rates lower was the notice by the Fed that it remains committed to reinvest the income it receives from monthly payments and periodic pay offs on its current mortgage bond portfolio. This statement appeared to investors by surprise and the prices of mortgage bonds headed higher pushing mortgage rates down lower.
The downward movement in mortgage rates has pushed the average rate on the most popular loan products to new all time lows. The benchmark 30 year fixed rate mortgage jumped down by a whopping twenty basis points or 20/100ths of a percent. The average rate on a 30 year mortgage from the top five bank mortgage lenders ended the week at 4.050 percent.
15 year mortgage rates dropped by an equally staggering number, falling 15 basis points on the week. The average 15 year mortgage rate coming from the nations’ top five mortgage lenders closed at 3.250 percent.
20 year mortgage rates were relatively subdued compare to the more popular 15 year and 30 year term home loans. The average 20 year mortgage rate fell by 7.5 basis points to 3.925 percent.
FHA mortgage rates split the difference, losing ten basis points for the week. The average rate on a 30 year FHA mortgage dropped to 4.050 percent from 4.150 in the prior week.
The current mortgage rates offered by the top five bank mortgage lenders in the survey includes the following 30 year mortgage interest rates, points charged and resulting APRs as of September 23, 2011:
The Chase 30 year mortgage rate is at 3.875% with 0.375 points and a 3.968% APR.
Bank of America 30 year mortgage rates ended at 4.000% and 0.75 points and an APR of 4.143%.
Citibank has a 30 year mortgage rate at 4.250% and 0.25 points for an APR of 4.334%.
Wells Fargo 30 year mortgage rate is at 3.875% with 1.0 point and a 4.025% APR.
US Bank mortgage rate for a 30 year term is 4.250% and no points and an APR of 4.313%.
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 September 23, 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 September 23, 2011.
Additional mortgage interest rates and home loan products are available from the listed bank mortgage lenders including mortgage rates in Massachusetts, mortgage loans and mortgage rates in Missouri, mortgage loans and mortgage rates in South Carolina, mortgage loans and mortgage rates in Wisconsin and similar regional home loans and mortgage rates.