Upcoming conforming loan limit drop could mean higher interest rates for some borrowers

Average mortgage rates remained constant according to the LendingTree Weekly Mortgage Rate Pulse, which tracks the lowest and average mortgage rates offered by lenders on the LendingTree network.

On July 19, average home loan rates offered by LendingTree network lenders were 4.77% (4.94% APR) for 30-year fixed mortgages, 4.00% (4.25% APR) for 15-year fixed mortgages and 3.56% (3.67% APR) for 5/1 adjustable rate mortgages (ARM). Average rates for 30-year fixed loans showed no fluctuation week-over-week while 5/1 ARMS increased slightly and 15-year fixed mortgage rates fell slightly.

On the same day, the lowest mortgage rates offered by lenders on the LendingTree network were 4.375 percent (4.51% APR) for a 30-year fixed mortgage, 3.375 percent (3.61% APR) for a 15-year fixed mortgage and 2.625 percent (3.00% APR) for a 5/1 ARM.

”With FHA and conforming loan limits set to move lower in October, consumers who are looking to refinance or purchase a home above the current limits should consider shopping for a home loan now,” said Mona Marimow, senior vice president at LendingTree.com. “Borrowers could face higher down payments and interest rates, as well as more stringent loan qualifications if their loan amount is above the new government limit. Consumers in higher-priced areas of the country will be the most affected. Fortunately these issues are being brought to attention now, and consumers still have time to explore their options and take advantage of today’s low rates.”

Below is a snapshot of the lowest mortgage rates for a 30-year fixed loan offered by lenders on the LendingTree network, as well as average loan-to-value ratios and negative equity by state.

STATE-BY-STATE MORTGAGE DATA 7/20/11

*Updated Quarterly

STATE LOWEST MORTGAGE RATE LOAN-TO-VALUE RATIO* NEGATIVE EQUITY*
US Average 4.38% (4.51% APR) 70.2% 35.0%
Alabama 4.38% (4.52% APR) 67.0% 28.9%
Alaska 4.38% (4.51% APR) 66.3% 17.3%
Arizona 4.38% (4.51% APR) 94.6% 39.4%
Arkansas 4.38% (4.49% APR) 72.6% 43.9%
California 4.38% (4.51% APR) 70.6% 34.8%
Colorado 4.38% (4.55% APR) 71.9% 22.2%
Connecticut 4.25% (4.36% APR) 59.5% 43.3%
Delaware 4.25% (4.36% APR) – 67.6% 50.3%
District of Columbia 4.25% (4.48% APR) 58.3% 25.5%
Florida 4.25% (4.36% APR) – 90.8% 41.1%
Georgia 4.38% (4.50% APR) 80.9% 25.8%
Hawaii 4.50% (4.63% APR) 54.2% 25.4%
Idaho 4.38% (4.51% APR) 73.4% 29.8%
Illinois 4.38% (4.51% APR) 72.4% 31.7%
Indiana 4.38% (4.56% APR) 69.4% 28.5%
Iowa 4.38% (4.51% APR) – 66.7% 42.9%
Kansas 4.38% (4.51% APR) – 70.5% 31.8%
Kentucky 4.38% (4.50% APR) 67.6% 53.1%
Louisiana 4.38% (4.51% APR) – 78.5% 75.5%
Maine 4.38% (4.49% APR) 58.6% 30.1%
Maryland 4.25% (4.48% APR) 70.4% 25.6%
Massachusetts 4.38% (4.49% APR) 60.7% 46.0%
Michigan 4.38% (4.50% APR) 84.3% 32.2%
Minnesota 4.25% (4.36% APR) – 65.6% 22.2%
Mississippi 4.38% (4.51% APR) – 78.4% 30.1%
Missouri 4.38% (4.51% APR) 71.6% 31.0%
Montana 4.38% (4.51% APR) – 60.2% 33.4%
Nebraska 4.38% (4.51% APR) – 72.3% 46.5%
Nevada 4.25% (4.40% APR) – 118.0% 55.3%
New Hampshire 4.38% (4.49% APR) – 69.8% 25.2%
New Jersey 4.25% (4.34% APR) – 62.2% 29.0%
New Mexico 4.38% (4.53% APR) 66.4% 45.8%
New York 4.38% (4.49% APR) 50.1% 42.1%
North Carolina 4.38% (4.51% APR) 71.2% 33.2%
North Dakota 4.38% (4.51% APR) – 60.1% 37.7%
Ohio 4.38% (4.50% APR) 75.4% 27.0%
Oklahoma 4.38% (4.49% APR) 71.0% 52.4%
Oregon 4.38% (4.54% APR) 69.6% 19.6%
Pennsylvania 4.25% (4.36% APR) – 62.5% 75.7%
Rhode Island 4.38% (4.51% APR) – 62.6% 36.6%
South Carolina 4.38% (4.50% APR) 71.0% 29.0%
South Dakota 4.38% (4.49% APR) N/A N/A
Tennessee 4.38% (4.52% APR) 71.2% 30.7%
Texas 4.38% (4.50% APR) 68.8% 30.6%
Utah 4.38% (4.62% APR) 73.7% 22.2%
Vermont 4.38% (4.51% APR) – N/A N/A
Virginia 4.25% (4.36% APR) 71.7% 25.0%
Washington 4.38% (4.53% APR) 67.9% 21.4%
West Virginia 4.38% (4.51% APR) – 67.0% 68.0%
Wisconsin 4.38% (4.51% APR) – 68.3% 35.6%
Wyoming 4.38% (4.51% APR) 64.2% 23.0%

For more information on current mortgage rates or for state specific mortgage rates, please visit http://www.lendingtree.com/mortgage-loans/rates/.

The LendingTree Weekly Mortgage Rate Pulse is published every Wednesday. Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower’s loan details and credit profile. Visit www.lendingtree.com to learn more.

About LendingTree, LLC

LendingTree, LLC is the nation’s leading online lender exchange and personal finance resource, helping consumers take charge of all their financial decisions, from budgeting to money management to mortgages to credit cards and more. LendingTree provides a marketplace that connects consumers with multiple lenders that compete for their business, as well as an array of online tools to aid consumers in their financial decisions. Since inception, LendingTree has facilitated more than 28 million loan requests and $214 billion in closed loan transactions. LendingTree provides access to lenders offering mortgages and refinance loans, home equity loans/lines of credit, and more. LendingTree, LLC is a subsidiary of Tree.com, Inc. (NASDAQ: TREE). For more information go to www.lendingtree.com, dial 800-555-TREE , join our Facebook page and/or follow us on Twitter @LendingTree.

MEDIA CONTACT:
Nicole Hall
(704) 943-8463
Nicole.Hall@tree.com

http://www.lendingtree.com

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