Home loan borrowing costs and mortgage rates continue to shift lower.  Almost three weeks after the Fed announcement to continue monetary easing by buying mortgage bonds, mortgage rates have ratcheted lower with very little interruptions or hiccups to the upside.  With the exception of two days of modestly higher mortgage rates, the past 10 business days have showed mortgage rates sliding down or moving sideways.  The 30 year mortgage rate has now crossed below the 3 and ½ percent mark.

The mortgage rate nose-dive the market is seeing was triggered by the Fed speech on September 13 that called for the FOMC to purchase $40 billion in mortgage backed bonds each month going forward.  The momentum continued with the trouble in the Euro zone heating up, since their troubles with excessive bank debt and government deficits has never been solved.  The Euro crisis keeps funds moving into US fixed income bonds including Treasuries and mortgage bonds and the Fed purchase program adds a significant amount of buying power or demand on mortgage bonds.  The increased demand from these two forces bids prices higher and pushes the interest rates on the bonds lower. 

In the most recent survey of bank mortgage rates conducted by Selectcdrates.com, the average 30 year mortgage rate slipped by almost eight basis points, one basis is equal to 1/100th of a percent.  The 30 year rate in the survey for the week ending September 28, 2012 moved down to 3.451 percent from 3.527 percent reached in the previous week.

15 year mortgages rates were less costly for new borrowers by about half as much as the 30 year term mortgages.  With a rate reduction of almost four basis points, the average 15 year mortgage rate dipped down to 2.796 percent after falling by roughly the same amount in the previous week which placed the average 15 year rate at 2.833 percent. 

FHA mortgage rates were forced down along with all mortgage products for the week.  30 year FHA home loans offered by the top bank mortgage lenders across the nation delivered the loan with an average rate of 3.350 percent.  This week’s results are six basis points below last week’s average rate of 3.413 percent.

A rate drop of almost ten basis points in the long term jumbo loans has driven the average mortgage rate below 4.00 percent.  The 30 year jumbo mortgage rate now stands at 3.924 percent, off of the average rate found in the prior weekly survey of 4.013 percent.

20 year term mortgage loans were cut down by a bit less than five basis points for the week.  20 year mortgage rates dropped down to 3.392 percent from 3.438 percent last week.

The shortest term mortgage in the survey, 10 year mortgages, showed the greatest rate change week over week.  The 10 year mortgage rate plunged 12 basis points.  20 year mortgages are now available with an average rate of 2.695 percent compared to an average rate of 2.819 percent available in the previous week.

The current survey of bank mortgage rates was conducted by Selectcdrates.com on September 28, 2012.  Bank mortgage rate data in the Selectcdrates.com weekly mortgage rate survey includes the mortgage interest rates, points charged and APRs from the nation’s largest bank mortgage lenders including: Chase Bank mortgage, US Bank mortgage, Citibank mortgage, Bank of America mortgage, TD Bank mortgage, Wells Fargo mortgage as well as other top bank mortgage lenders.

The mortgage rates displayed are generally based on home loans with a minimum 20 percent down payment and are available for the most credit worthy borrowers from the bank lenders in the survey.  The loan down payment amount, loan to value ratio, borrower’s credit profile, geographic location of the property and other factors will impact the mortgage interest rate and costs on an individual mortgage loan request. 

To review a current list of the top bank mortgage lenders and mortgage rates for the September 28, 2012 weekly bank mortgage rate survey please see the following mortgage rate tables: 30 year mortgage rates, 15 year mortgage rates, 20 year mortgage rates, 10 year mortgage rates, FHA mortgage rates and jumbo mortgage rates

Bank mortgage rates are also available at Bank of America mortgage rates, Citibank mortgage rates, Chase mortgage rates and Wells mortgage rates.  Individual state mortgage rates can be found at the following pages: Illinois mortgage rates, Massachusetts mortgage rates, Ohio mortgage rates, Missouri mortgage rates and more.

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