Mortgage rates for new home loan borrowers continue to hover at the low points for the year.  The mortgage bond market and Treasury market have been moving in a favorable direction for new home loan borrowers throughout most of the year even while the economy appears to be moving forward.  With rates on new home loans holding at 2014 lows, the business chatter regarding slow home sales and home affordability would seem very suspect with regards to mortgage rates being the culprit, as opposed to housing prices or income changes. 

While the economy shows signs of strength, with the occasional release of some disappointing economic results such as the first quarter GDP release, the bond market has just not budged.  Now, current mortgage rates are above the best levels that were seen in mid 2013 when the average 30 year fixed rate mortgage was under 4.00%.  However, the average rates on a 30 year loan going into May 2014 is right at the levels the market saw in the second half of 2013 and below the rates or early 2014.

For the week ending May 2, 2014 the average 30 year mortgage rate dipped to 4.341% from an average rate of 4.396% in the prior week.  The average 30 year mortgage rate displayed is based on a survey of the top ten largest bank mortgage lenders including the rates from Chase, Wells Fargo, Citibank, and US Bank.  These banks originate well over 50% of all home loans across the country.  The survey for the last week of 2013 had the average 30 year mortgage rates from the same lenders at 4.704%.

30 year FHA mortgage rates were close behind the conforming rates with the average government insured loan dropping to 4.025% from 4.088% in the week earlier.  30 year jumbo mortgage rates showed a slightly larger decline, falling to 4.225% from 4.238% in the previous survey.           

Shorter term mortgage rates were lower on the week as well with rate reductions on the ten to 20 year term loans dropping by approximately five basis points or .05%.  Ten years loan rates ended the week at 3.113%, 15 year mortgage rates came in at 3.489%, and the average 20 year home loan rate in this week’s survey was 4.066%.

The most recent weekly bank mortgage rate survey calculates the average rate offered on a variety of home loan products from the nations’ largest bank mortgage lenders for the week ending May 2, 2014. 

The mortgage rate information obtained in the mortgage survey assumes the purpose of the mortgage loan is to purchase an existing single family home to be used as a primary residence with a loan amount of $250,000 and an estimated property value of $325,000.  The current mortgage interest rates may vary without prior notice from the mortgage lenders and are subject to change based on location, geography and other terms and conditions.

To review the latest mortgage rates and loan costs from the top bank mortgage lenders in this week’s bank mortgage rate survey dated May 2, 2014 please see the following mortgage rate tables: all mortgage rates, 30 year mortgage rates, 15 year mortgage rates, 20 year mortgage rates, 10 year mortgage rates, FHA mortgage rates and jumbo mortgage rates.

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