LendingTree Monthly Mortgage Review: High Affordability and Record-Low Rates, but True Recovery Still Pending

Texas, Massachusetts and Washington D.C. Currently Offering Best Rates for Qualified Borrowers

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Feb 02, 2012, 11:30 ET

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."

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:

State	30-yr Fixed Rate
Texas	4.17%
Massachusetts	4.18%
Washington, D.C.	4.20%
New Jersey	4.21%
Virginia	4.22%
Maryland	4.22%
California	4.22%
Wyoming	4.23%
Washington	4.23%
Oregon	4.23%

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

Metro Area	30-year Fixed Rate
Austin, TX	4.11%
Houston, TX	4.15%
Dallas - Fort Worth TX	4.16%
San Antonio, TX	4.17%
Boston, MA	4.18%
Seattle, WA	4.19%
Washington, DC	4.20%
San Diego, CA	4.21%
Allentown, PA	4.21%
Portland, OR	4.21%

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 inefficiencies
Restricted access to credit, consumers unable to act on low rates
Uncertainty in regulation changes
Stagnant 'shadow inventory'

"For right now, the focus remains on jobs for improving the economy," adds Cameron Findlay, chief economist at LendingTree. "Current market conditions reflect a slowdown in hiring and today's release of the conference board's Consumer Confidence Index once again indicates a sluggish recovery. However, the underperforming economy is translating into lower rates for qualified borrowers. This week, new records are being broken with FNMA Current Coupon yields continuing to decline."

In January, the lowest mortgage rates offered by lenders on the LendingTree were 3.5 percent (3.62% APR) for 30-year fixed mortgages, 2.75 percent (2.97% APR) for 15-year fixed mortgages and 2.50 percent (3.20% APR) for 5/1 adjustable rate mortgages (ARM). Lowest mortgage rates offered decreased slightly month-over-month.

To view the LendingTree Economic Indicator document, please visit: http://marketing.lendingtree.com/pr/Economic_Indicators_Jan2012_Preliminary.pdf

The LendingTree Monthly Mortgage Snapshot is published the last week of each month. Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile. Visit www.lendingtree.com to learn more.

About LendingTree, LLC
LendingTree, LLC is the nation's leading online lender exchange and personal finance resource, helping consumers take charge of all their financial decisions, from budgeting to money management to mortgages to credit cards and more. LendingTree provides a marketplace that connects consumers with multiple lenders that compete for their business, as well as an array of online tools to aid consumers in their financial decisions. Since inception, LendingTree has facilitated more than 30 million loan requests and $214 billion in closed loan transactions. LendingTree provides access to lenders offering mortgages and refinance loans, home equity loans/lines of credit, and more.LendingTree, LLC is a subsidiary of Tree.com, Inc. (NASDAQ: TREE). For more information go to www.lendingtree.com, dial 800-555-TREE, join our Facebook page and/or follow us on Twitter @LendingTree.

MEDIA CONTACT:
Megan Greuling
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SOURCE LendingTree, LLC