Mortgage Rates Continue to Drop

Mortgage Rates

The latest figures released by LendingTree in their Weekly Mortgage Rate Pulse indicate that mortgage rates have fallen to new lows, with rates as low as 4.00 percent (4.13 percent APR) for 30-year fixed mortgages, 3.50 percent (3.74 percent APR) for 15-year fixed mortgages and 3.00 percent (3.46 percent APR) for 5/1 adjustable rate mortgages (ARMs) being offered by lenders within the LendingTree network.

The LendingTree Weekly Mortgage Rate Pulse also released figures for the average mortgage rates being offered across its network of lenders, which have also dropped since last week. The current average mortgage rates are 4.38 percent (4.58 percent APR) for a 30-year fixed mortgage, 3.86 percent (4.15 percent APR) for a 15-year fixed mortgage and 3.41 percent (3.7 percent APR) for a 5/1 ARM.

Cameron Findlay, Chief Economist of LendingTree.com, commented on reasons behind the figures in the latest Weekly Mortgage Rate Pulse: “Gross Domestic Product second quarter forecast results showed the economy is growing at an annualized rate of 1.6%, less than last month’s 2.4% forecast. This slowdown was attributed to a decline in housing and investment in business, suggesting consumer spending may follow suit. Despite 10-year treasury yields declining 0.50% in August, mortgage rates have only declined 0.22% on 30-year fixed loans, suggesting the influence of government support is starting to wane on driving mortgage costs for borrowers lower. This could potentially stall government efforts to stabilize home prices.”