Shorter Term Mortgages Becoming Popular as Mortgage Rates Fall

(LoanRateUpdate)- Shorter term mortgages have grown more attractive to borrowers as interest rates on fixed rate loans continue to decline fueling a 31 percent increase in 15-year fixed rate mortgage requests according to the data collected by LendingTree’s Weekly Mortgage Rate Pulse.

Fixed Rate Mortgages (FRM) as of August 16, 2011:

The average home loan rates offered by network lenders for 30 year FRMs was 4.35 percent (4.59% APR), which is down from 4.49 percent reported the previous week.

The lowest mortgage rate offered for a 30 year FRM was 3.875 percent (4.01% APR), which is down from 4.125 percent offered the week before.

The average home loan rates offered by network lenders for 15 year FRMs was 3.59 percent (3.68% APR), a drop from 3.72 percent reported the previous week

The lowest mortgage rate offered for a 15 year FRM was 3.125 percent (3.36% APR), which is down from 3.25 percent offered the week before.

Adjustable Rate Mortgages (ARM) as of August 16, 2011:

The average home loan rate offered by network lenders for 5/1 adjustable rate mortgages (ARM) was 3.56 percent (3.80% APR), which was up from 3.40 percent reported last week.

The lowest mortgage rate offered for a 5/1 ARM was 2.5 percent (3.04% APR), which is down from 2.625 percent offered the week before. Read more here…