RISMEDIA, January 14, 2011—Average mortgage rates fell week-over-week, but the decrease is expected to be short-lived, according to the LendingTree Weekly Mortgage Rate Pulse, a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders.
On January 11, average home loan rates offered by LendingTree network lenders were 4.97% (5.22% APR) for 30-year fixed mortgages, down from last week’s average rates of 5.01% (5.22% APR). Rates for 15-year fixed mortgages were 4.31% (4.69% APR) and 3.78% (4.02% APR) for 5/1 adjustable rate mortgages (ARM). Rates for 15-year fixed mortgages and 5/1 ARMs also dipped week-over-week.
On the same day, the lowest mortgage rates offered by lenders on the LendingTree network were 4.375% (4.57% APR) for a 30-year fixed mortgage, 3.75% (3.99% APR) for a 15-year fixed mortgage and 3.00% (3.21% APR) for a 5/1 ARM.
“The party is over when it comes to record-low mortgage rates,” said Cameron Findlay, LendingTree chief economist. “Fannie Mae recently announced some key changes that are expected to cause mortgage rates to rise: Loan-Level Price Adjustments and Adverse Market Delivery Charges. To the average consumer, this may sound like a lot of industry jargon, but these changes are going to translate into real cost to borrowers in the upcoming weeks. The Fannie Mae changes will go into effect on April 1, but borrowers will likely see an impact in rates by February 1. For homeowners looking to save on their monthly expenses, now is the time to refinance.”
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