Mortgage interest rates improved significantly on Friday, as new headlines surfaced on the Ukraine/Russia conflict, which eventually had major impact on rates. The Bureau of Labor Statistics announced that the U.S. economy added 288,00 jobs in April, which is notably higher than the consensus expectation of 218,000 jobs. Naturally, such a figure would have a major impact on financial markets, but this wasn’t the case on Friday. While initally the data sent mortgage interest rates higher, the gains started evaporating later that day following the release of some geopolitical news from Ukraine. As an outcome, mortgage rates not only bounced back, but moved significantly lower, to such levels, we haven’t seen in months.
On Friday, a number of mortgage originators, including Bank of America (NYSE:BAC) updated their rate sheets with lower rates. Currently, the 30-year fixed home purchase loan is advertised at a rate of 4.000% down from the previous 4.125% that it held on Thursday. The 15-year home loan is currently offered at a rate of 3.250% at this lender. Moving on to flexible home loan offerings, the 7/1 ARM is listed at a rate of 3.000%. The 5-year adjustable rate home loan retained its level at 2.625%, according to BofA’s latest mortgage information.
Switching to refinance mortgage rates, the long-term, 30-year FRM is quoted at 4.250% at the Charlotte-headquartered lender. The 15-year refinance loan is holding steady today, as it’s coming out at 3.250%. We haven’t spotted any changes regarding the lender’s flexible refinancing options, like ARM loans. Those who can afford to refinance with the 7/1 adjustable rate mortgage, can expect to pay 3.125% in interest. The 5-year ARM is up for grabs at an interest cost equivalent to 2.875%. More information on today’s mortgage rates, discount points and APRs can be found below.
Bank of America, one of the country’s largest mortgage provider, offers excellent interest rates under both its home purchase and refinance mortgage programs, so those who are looking to invest either in a new / used home or to refinance an existing loan, may find some loan solutions at this financial institution.
Bank of America Home Purchase Rates
30-Year Fixed-Rate Mortgage: 4.000%, 1.494 discount points, 4.228% APR
15-Year Fixed-Rate Mortgage: 3.250%, 0.776 discount points, 3.531% APR
5/1 Adjustable Rate Mortgage (ARM): 2.625%, 1.056 discount points, 2.875% APR
7/1 Adjustable Rate Mortgage (ARM): 3.000%, 0.924 discount points, 3.026% APR
Bank of America Refinance Rates
30-Year Fixed-Rate Mortgage: 4.250%, 0.535 discount points, 4.399% APR
15-Year Fixed-Rate Mortgage: 3.250%, 1.116 discount points, 3.580% APR
5/1 Adjustable Rate Mortgage (ARM): 2.875%, 0.912 discount points, 2.951% APR
7/1 Adjustable Rate Mortgage (ARM): 3.125%, 0.968 discount points, 3.087% APR
Please, bear in mind, that the present mortgage interest rates may vary without prior notice from the lender and are subject to change based on location, geography and other terms and conditions. The annual percentage rates (APR) were made based on discount points, origination fees, average loan fees and closing costs.
In other mortgage-related news, the Mortgage Bankers Association (MBA) released the results of its weekly survey on Wednesday. According to the latest data, the Market Composite Index, which measures overall mortgage application volume, dipped 5.9% on a seasonally adjusted basis in the week ended April 25. The industry group’s weekly survey revealed that the number of applications reached its lowest level since December 2000. Loan applications for mortgage refinancing decreased 6.9%, according to the MBA’s survey. The Purchase Index, on the other hand, tumbled 4.4% compared to the previous week’s data. The refinance share of total mortgage applications declined further last week and now it stands at 50%, the MBA announced.
The average contract interest rate on the 30-year fixed mortgage hasn’t seen any changes, according to the MBA, it still hovers at 4.49%. As far as the 15-year FRM is concerned, the average rate edged down to 3.53% from the previous 3.55%.
Virginia-based housing finance company, Freddie Mac published the results of it weekly mortgage survey on Thursday, which revealed that the average rate on the 30-year fixed mortgage eased to 4.29%. This is a lower mortgage interest rate compared to the previous 4.33% that it had a week earlier. On the other hand, the average rate on the shorter-term 15-year fixed mortgage ticked down to 3.38% this week. With regards to the 5-year Treasury-indexed hybrid adjustable rate loan, it advanced by 2 basis points to 3.05%. The average rate on the 1-year ARM followed the same path, it’s now coming out at 2.45%, according to Freddie Mac’s data.
For more details on the latest home purchase and refinance mortgage interest rates at Bank of America, as well as details on borrowing terms and conditions and loan assumptions, please take a visit to the bank’s website.