Mortgage Rates Continue to Fall
CHARLOTTE, N.C. Aug. 17, 2011 /PRNewswire/ — Average mortgage rates continued to fall week-over-week, once again marking the year’s lowest levels according to the LendingTree Weekly Mortgage Rate Pulse, which tracks the lowest and average mortgage rates offered by lenders on the LendingTree network.
On August 16, average home loan rates offered by LendingTree network lenders were 4.35% (4.59% APR) for 30-year fixed mortgages, 3.59% (3.68% APR) for 15-year fixed mortgages and 3.56% (3.80% APR) for 5/1 adjustable rate mortgages (ARM). Average 30-year and 15-year fixed showed a 14% decrease week-over-week.
On the same day, the lowest mortgage rates offered by lenders on the LendingTree network were 3.875 percent (4.01% APR) for a 30-year fixed mortgage, 3.125 percent (3.36% APR) for a 15-year fixed mortgage and 2.50 percent (3.04% APR) for a 5/1 ARM, showing about a 50 basis point difference between average and lowest rates offered.
“Lenders on the network have recently seen more borrowers make the rational switch to shorter-term mortgages,” says Mark Fowler, senior vice president of exchange operations at LendingTree. “With rates as low as we’re seeing today, it makes sense to consider shorter term loan options where borrowers can quickly build equity and pay less interest. Homeowners who want to refinance should at least look into less popular loan options like a 15-year fixed-rate mortgage. If it financially makes, you’ll be able to shave years off the loan”