LendingTree Fall 2012 Housing Outlook Predicts Record Low Mortgage Rates

Released  September 25, 2012
By Megan Greuling

CHARLOTTE, NC (September 25,  2012) – With mortgage rates near record lows, home prices stabilizing and the home-buying season coming to a close, the autumn months prove to be unprecedented for the housing market. According to the LendingTree Monthly Mortgage Review, which provides an industry overview and tracks the lowest and average mortgage rates offered by lenders on the LendingTree network, the summer’s average mortgage rate was 3.91 percent for a 30-year fixed rate mortgage, with the average home loan of just over $200,000. While mortgage rates are expected to remain low this fall, access to credit is expected to remain constrained for many borrowers.


“Home values are beginning to improve just as we approach the close of the home-buying season,” says Doug Lebda, founder and CEO of LendingTree. “Home prices are still below the levels they were five years ago, creating an excellent opportunity for first-time homebuyers to enter the market. Homeowners who want to refinance may find it is easier to meet loan-to-value requirements, however, mortgage lending overall is expected to remain tight due to continued uncertainty around housing regulations.”


LendingTree Fall 2012 Housing Outlook:



  • Mortgage rates slightly above record lows due to the Fed’s efforts to aid economic recovery.

  • Seasonal drop-off in home purchases, with refinances remaining relatively flat.

  • Access to credit relatively tight due to uncertainty surrounding housing regulations.

  • Upcoming Presidential election to create even further uncertainty

  • High home affordability even though prices are stabilizing and in some areas increasing.

  • A sustainable housing market recovery is contingent upon a healthy jobs market.

The chart below shows the Top Ten States with the lowest average 30-year fixed mortgage rate from May 31 to September 3, 2012, with New Jersey taking the top position followed by Texas and Hawaii.






















































Top Ten States With Lowest Average 30-Year Fixed Rate


May 31, 2012 through September 3, 2012


State


Average 30-yr Fixed Rate


Average Loan Amount


Average Credit Score


NJ


3.836%


 $252,799


745


TX


3.840%


 $170,531


732


HI


3.847%


 $302,522


754


CT


3.851%


 $233,901


751


MA


3.856%


 $234,765


747


WA


3.857%


 $221,857


751


NY


3.859%


 $221,215


741


CA


3.860%


 $283,698