Top Mortgage Rates Stay Close to Record Lows November 21, 2011
Although mortgage rates settled into a holding pattern towards the tail end of last week, a brief period of improvements early in the week has held mortgage rates within striking distance of all time record lows for 2011. Mortgage bonds displayed higher prices on Monday and Tuesday which pushed down interest rates as the spectacle in Europe simply would not go away. Mortgage rates and bond prices held those positions throughout the week leading to mild improvement across the board for mortgage loan products.
Every time the troubles arise over the excessive government debt in the Euro region, there is an increase in demand for safe-haven investments such as US Treasury bond and mortgage bonds. Interest rates move in the opposite direction of the bond prices, when mortgage bond prices increases the interest rates on the bonds drop. This flight to safety has kept a lid on mortgage rates for most of the third and fourth quarter.
By week’s end, the average 30 year mortgage rate in the current Findlocalmortagerates.com mortgage rates survey dropped by five basis points. One basis point is equal to 1/100th of a percent. The average rate form the top five bank mortgage lenders on a 30 year fixed rate mortgage ended the week at 4.100 percent after starting out at 4.150 percent.
The average 15 year mortgage moved lower by exactly half as much as the 30 year. The rate on the 15 year fixed rate loan was down by just 2.5 basis points. The average 15 year mortgage rate descended to a level of 3.375 from 3.400 in the prior week.
FHA mortgage rates with a 30 year term tumbled by the same amount as the conforming 30 year mortgage or five basis points. The drop in the average FHA mortgage rate placed the interest rate on this loan product under 4.00 percent. In the most recent survey, the average 30 year FHA mortgage rates came in at 3.950 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 November 18, 2011:
Chase Bank markets a 30 year fixed rate mortgage at 4.125% and 0.375 points for a 4.219% APR.
Wells Fargo has the 30 year mortgage rate at 4.00% with 1.0 point and a 4.151% APR.
US Bank delivers the 30 year fixed rate mortgage at 4.125% with zero points for an APR of 4.188%.
A Citibank 30 year mortgage rate is 4.250% and 0.625 points and a 4.366% APR.
Bank of America’s 30 year mortgage rate is 4.000% with 0.875 points and a 4.149% APR.
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 November 18, 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 November 18, 2011.
Additional mortgage interest rates and home loan products are available from the listed bank mortgage lenders including mortgage rates in Idaho, mortgage loans and mortgage rates in Utah, mortgage loans and mortgage rates in Missouri, mortgage loans and mortgage rates in South Dakota and similar regional home loans and mortgage rates.