Mortgage | LendingTree Monthly Mortgage Review: High Affordability And Record-Low Rates, But True Recovery Still Pending

February 4, 2012 – 2:42 am

CHARLOTTE, N.C., Feb.2, 2012 /PRNewswire/ –Despite historic lows, LendingTree says that lending institutions continue to hamper housing market growth by restricting access to credit.

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According to the LendingTree Monthly Mortgage Review – which tracks the lowest and average mortgage rates offered by lenders on the LendingTree network, offers an industry overview and provides an outlook for the month ahead – average mortgage rates remained flat for the month of January. Even with this excellent climate, however, many borrowers find themselves unable to take advantage of rates due to overly strict lending standards.

“With housing affordability at an all-time high and rates at record lows, it’s alarming that some borrowers are unable to take advantage of the environment,” says Doug Lebda, founder and CEO of LendingTree. “Even though we’ve seen more demand in January, the reality is that many consumers are finding it difficult to obtain access to credit, further delaying a housing recovery. Low credit scores, unemployment, and declining home values are a few of the culprits of the prolonged recovery. However, with the market poised for continued low rates and high affordability, qualified borrowers can really benefit from these conditions.”

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In terms of the best rates in the country, key markets in Texas, including Austin, Houston and Dallas-Fort Worth, as well as Boston, Massachusetts and Washington, D.C. are experiencing better-than-average rates for those looking to borrow.

In January, 2012, average mortgage rates offered by LendingTree network lenders were 4.27 percent (4.52% APR) for 30-year fixed mortgages, 3.48 percent (3.89% APR) for 15-year fixed mortgages and 3.21 percent (3.47% APR) for 5/1 adjustable rate mortgages (ARM), extending the opportunity for homeowners and homebuyers to take advantage of historically low rates. There was little fluctuation in mortgage rates month-over-month.

The top ten states with the lowest average mortgage rate according to LendingTree data for January fall below the 4.27 percent mark and are :

The top ten metro areas with the lowest average rates according to LendingTree data for January are:

Lebda says that in addition to access to credit, several other key factors are contributing to the recovery climate:

Factors Helping Recovery

Affordability is at an all-time high

Record low mortgage rates, with rates poised to stay low or even decline

Unemployment improving in several key markets

Factors Hampering Recovery

Appraisal

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