LendingTree Weekly Mortgage Rate Pulse Reveals Rates on the Rise

CHARLOTTE, NC (December 15, 2010)  – Average mortgage rates rose week-over-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 December 14, average home loan rates offered by LendingTree network lenders rose week-over-week to 5.05 percent (5.3% APR) for 30-year fixed mortgages, up 0.22 percent from last week. Rates also climbed to 4.38 percent (4.77% APR) for 15-year fixed mortgages and 3.93 percent (4.09% APR) for 5/1 adjustable rate mortgages (ARM).

On the same day, the lowest mortgage rates offered by lenders on the LendingTree network were 4.50 percent (4.70% APR) for a 30-year fixed mortgage, 3.88 percent (4.12% APR) for a 15-year fixed mortgage and 3.00 percent (3.26% APR) for a 5/1 ARM. Rates elevated week-over-week for each loan type.

“When there’s volatility in the market like this, spreads between lenders widen and competition among banks heats up, making it imperative for consumers to do their homework before locking in a rate,” said Nicole Hall, LendingTree home loan shopping expert. “According to a recent LendingTree survey, we found though 9 in 10 borrowers understand interest rates vary between lenders, nearly 40 percent obtained only one home loan quote when shopping for their mortgage. This is disheartening, but explains why fewer than 28 percent of borrowers are very confident they received the best possible deal on their current mortgage.“

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.