LendingTree.com Weekly Mortgage Rate Pulse Reports Average Rates Fall to 4.45 Percent

CHARLOTTE, NC (August 25, 2010) – Average mortgage rates fell this week, according to the LendingTree Weekly Mortgage Rate Pulse, a snapshot of the lowest and average mortgage rates available within the LendingTree network of lenders.

On August 24, lenders on the LendingTree network offered mortgage rates as low as 4.0 percent (4.13% APR) for a 30-year fixed mortgage, 3.5 percent (3.74% APR) for a 15-year fixed mortgage and 2.75 percent (3.43% APR) for a 5/1 adjustable rate mortgage (ARM). Rates for 30 year and 15 year home loans remained flat week over week, while rates for 5/1 ARMs fell one eighth of a point.

Average home loan rates offered by lenders on the LendingTree network dropped from last week’s lows to 4.45 percent (4.66% APR) for 30-year fixed mortgages, 4.01 percent (4.33% APR) for 15-year fixed mortgages and 3.43 percent (3.65% APR) for 5/1 ARMs.

“As mortgage pipelines are choking with volume given strict underwriting and processing demands, treasury yields are falling faster than mortgage rates,” said Cameron Findlay, Chief Economist of LendingTree.com. “Unless we see some signs of significant market stability, which is unlikely based on NAR’s weak July existing home sales numbers, I believe the government’s next move will focus on eligibility rather than rate control, encouraging refinancing in the near term and spurring consumer spending to avert further home price erosion”

Below is a state-by-state comparison of mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity.