Los Angeles Mortgage Rates Survey – Week of January 13, 2012

According to a recent Primerates.com survey of Los Angeles mortgage rates offered by the largest Los Angeles area banks & credit unions, most institutions rates fell slightly from those offered at the end of December. OneWest Bank (www.owb.com) offered the lowest rates on 30-year fixed -rate conforming loans in the LA metro area for well-qualified borrowers with 3.75%.  Comerica Bank (www.comerica.com) offered rates not even a half a percentage point higher at 4.13%

There are a number of factors that influence what mortgage rates will do.  In order to try to predict which direction rates are going to move, many investors and future home buyers will watch the 10-year treasury yields.  If the yields drop, then the mortgage rates will typically drop as well.  Lately the 10-year rates have been around 2% with minor fluctuations.  Since the federal funds rate is as close to zero as possible, the yields on the 10-year treasuries are not moving around drastically.  This accounts for why most of the rates offered by various lending institutions are barely moving.  Unfortunately for the potential home buyer, the rates will most likely not drop too much further, and when the economy picks back up, the rates will start to go back up as well.

Listed rates from banks, thrifts and credit union were listed on their websites on the date indicated for conforming loans with 0 points.  Data is believed accurate at time of collection, can change without notice, and will vary based on an individual’s credit history.  Contact a specific institution for current rates.