For the third day in a row Bank of America (NYSE:BAC) lowered the 30 year fixed mortgage interest rate, today to 3.875%. The loan has .875 points and a 4.051% APR. This home purchase rate beats Wells Fargo (NYSE:WFC) and CitiMortgage (NYSE:C) who are quoting 4.00%.
20 year fixed rate loans at BoA are down to 3.50% today yielding an APR of 3.756%. 15 year loans are 3.25% with .875 points and a 3.56% APR. 15 year rates at PNC Mortgage (NYSE:PNC), Wells Fargo, PHH Mortgage, US Bank and SunTrust are all quoting 3.25%. CitiMortgage is quoting 3.375%.
7 year ARMs for home purchase are 3.00% even. 5 year ARMs are 2.75% and 10 year ARMs are 3.50%. Fixed rate loans are actually as low as the 7 and 10 year ARMs in some cases, so unless the short term rates really tank, the fixed rates are the way to go.
Despite the new lows at Bank of America and elsewhere there is very limited market for new homes. New home building starts declined again in August. Existing home sales were up compared to a year ago but last August’s numbers were extremely low because the home buying tax credit had just expired.
Visit www.BankofAmerica.com for quotes by location and detailed information on lending terms and conditions.