We certainly don't want a return to the lending decisions that contributed to the recent economic recession, but as the Fed increases their purchase of mortgage backed securities it may be the incentive banks need to want to lend a bit more.
Wilmington, NC (PRWEB) September 28, 2011
Interest rate research website, ForTheBestRate.com reported mortgage rates advertised Friday, September 23rd, 2011 were the lowest in the site's history. 30 year fixed rate mortgage pricing was posted in the rate tables as low as 3.500% (APR: 3.700%, Points: 2, Lender: Gateway Bank Mortgage.) This latest drop in interest rates followed an announcement from the Federal Reserve on Wednesday, September 21st that they would further action to move interest rates even lower in an effort to encourage more lending from banks.
The program, given the moniker "Operation Twist", is aimed at moving long term interest rates lower, and enticing lending institutions to make more loans, both residential and commercial.
"It's unclear just how much lower mortgage rates can go," said Nat Criss, Managing Partner of CMG Equities which owns and operates ForTheBestRate.com. "It's great to see such low pricing, which is really unprecedented, but for many more homeowners to take advantage of it we may need to also see a little more flexibility in lending standards. We certainly don't want a return to the lending practices that contributed to the recent economic recession, but as the Fed increases their purchase of mortgage backed securities it may be the incentive banks need to want to lend a bit more."
The rates posted in the rate tables on ForTheBestRate.com are for primary residences, though many of the banks and mortgage lenders advertising on the site offer a wide range of products for which pricing has also fallen. Low rates are available on many loan programs such as FHA loans, USDA rural housing loans, investment property loans, and mortgages for borrowers with less than perfect credit.
Below is a snapshot of mortgage rates for a variety of products listed on ForTheBestRate.com on 9/23/2011. Rates are subject to change. Please visit the site to view the criteria used in the survey.
30 Year Mortgage Rates (0 Points)
Quicken Loans – 4.250% Note Rate – 4.348% APR – $2303 Fees in APR
New American Mortgage – 3.875% Note Rate – 3.933% APR – $1395 Fees in APR
20 Year Mortgage Rates (0 Points)
Quicken Loans – 3.875% Note Rate – 3.993% APR – $2053 Fees in APR
Gateway Bank Mortgage – 3.750% Note Rate – 3.783% APR – $575 Fees in APR
15 Year Mortgage Rates (0 Points)
Atlantic Mortgage - 3.250% Note Rate - 3.251% APR - $10 Fees in APR
Lending Tree Loans - 3.625% Note Rate - 3.735% APR - $1500 Fees in APR
5 Year ARM Rates (0 Points)
New American Mortgage - 3.000% Note Rate - 3.055% APR - $1395 Fees in APR
Atlantic Mortgage Funding - 2.625% Note Rate - 2.659% APR - $895 Fees in APR
ForTheBestRate.com is a website that offers information regarding mortgages, insurance, and personal finance. ForTheBestRate.com is owned by CMG Equities, LLC based in Wilmington, North Carolina.