Lenders are offering traditional fixed-rate mortgages for less than 5% in nine of the 10 major cities we surveyed this month.
That’s quite an improvement from July when only one of the 10 cities we looked at had those loans available for less than 5%.
It’s nearly as good as what we found in November, when average mortgage rates plunged to new record lows and loans were available for less than 5% in every single city we surveyed.
We compare 30-year, fixed-rate loans with no points and fees of less than $2,000 because that’s the best mortgage for most borrowers.
The best deals we found were:
Boston: 4.625% from Total Mortgage Services.
Charlotte: 4.875% from Assent Mortgage Company.
Chicago: 4.875% from AmericanInterbanc.com.
Detroit: 4.75% from Amera Mortgage Corporation.
Houston: 4.875% from EverBank.
Los Angeles: 4.875% from AimLoan.com.
Memphis: 4.875% from Atlantic Mortgage & Funding, Inc.
New York City: 5.0% from Astoria Federal Savings.
Orlando: 4.75% from EZZ Financial
Seattle: 4.875% from Mortgage Capital Associates.
The fine print: These mortgage rates are for conforming loans (less than $417,000), and for borrowers with credit scores of at least 700. For scores from 680 to 699, you’ll usually pay higher fees, up to 1% of the loan value, or a higher rate.