Top Five Mortgage Lenders Rates May 3, 2010
Mortgage rates from the top five bank mortgage lenders dropped rather measurably for the week ending May 7, 2010 according to the most recent survey of mortgage rates performed by Findlocalmortgagerates.com.
The average mortgage rate on a 30 year fixed rate mortgage loan from the top five mortgage lenders closed out the week at 5.00% with 0.475 points. This is a reduction in the average 30 year fixed rate mortgage of ten basis points or 10/100 of a percent. In the previous week, the average 30 year fixed rate came in at 5.10%. The amount of points charged by these mortgage lenders to obtain the rate was unchanged week over week.
With mortgage rates remaining quite low throughout most of this year thus far, a drop of this magnitude is fairly significant. Of course, market turbulence in the past few weeks brought on by the problems with the financial debt troubles in Greece has driven funds into safe investments such as U.S. Treasuries and mortgage backed securities. The ten year Treasury bond, which is one of the best barometers on the direction of mortgage rates, ( the best barometer being the rates on actual mortgage backed securities ) moved from a yield of 3.72% on Monday May 3rd to 3.57% on Friday may 7th. An interest rate reduction of that magnitude is not enough seen in just one week in the Treasury markets.
One concern regarding investor turmoil and the future direction of mortgage rates is that once the concerns regarding market instability subsides funds will flow into commodities and stocks and out of Treasuries and mortgage backed securities, reversing the direction of mortgage rates and subsequently driving rates higher. This outcome for mortgage rates is highly likely, however, the rate increases in the coming weeks will most likely be mild.
The top five mortgage lenders in this week’s survey of the 30 year fixed rate mortgages continues to include the rates of Chase Mortgage, Wells Fargo Home Loans, Citibank, Bank of America and US Bank. These bank mortgage lenders are also the five largest banks in the U.S. based on assets.
The mortgage rates from these individual mortgage lenders in this week’s survey for the 30 year fixed rate home loan were as follows:
Chase Bank Mortgage’s 30 year fixed rate home loan has a mortgage interest rate of 5.125% with 0.375 points and a 5.215% APR.
Bank of America Home Loans has the 30 year fixed rate mortgage at 4.875% with 1.0 point and a 4.993% APR.
Citibank’s offers a 30 year fixed rate mortgage at 5.125% with no points and an APR of 5.261%.
Wells Fargo Home Loans markets the 30 year fixed rate mortgage loan at 4.875% and 1.0 point for a 5.065% APR.
US Bank has a 30 year fixed rate home loan with a mortgage rate of 5.000% and no points with a 5.066% APR.
There are a number of other mortgage loan options available from these mortgage lenders including additional rate and point options. The mortgage rates, points and APRs listed are subject to change. The mortgage rates, points and APRs in the survey are for a home loan of between $200,000.00 and $275,000.00 on a single family owner occupied home with a minimum 20% down payment. These mortgage rates are believed to be accurate and current as of the date of this publication. Mortgage interest rates are not guaranteed.
For additional information on these mortgage rates, the mortgage lenders can be reached directly at the following numbers:
Chase Bank 800-873-6577
Bank of America 888-233-4124
Citibank 800-667-8424
Wells Fargo 877-937-9357
US Bank 888-831-7524