The month of April was a very interesting month for average 30 year fixed mortgage rates. To start the month the 10 year treasury rate yield was moving higher. In fact, the 10 year yield pushed above its 200 day moving average very early in the month but that changed quickly on April 9th. The 10 year yield dropped to around 2% and it never jumped above the 50 day or 200 day moving average again the entire month. This helped to keep mortgage interest rates near historic lows.
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Average 30 Year Fixed Mortgage Rates Remain Very Low
The 10 year treasury rate yield and the 30 year fixed mortgage have had a very strong correlation for several decades. As the 10 year yield dropped we saw 30 year fixed mortgage rates pierce the 4% mark. For a very brief period of time the average 30 year fixed mortgage rate was being reported above 4% in early April. The drop on April 9th in the 10 year yield changed that quickly. For the month the 30 year fixed mortgage rate averaged 3.75% for most states.Those searching for mortgage loans will find a number of banks and lenders looking to provide services.
It is important to note that interest rates can fluctuate based on a state and city. There are some cities that saw interest rates well above 4% for several days in April but this was uncommon across the board. Those looking for Bank of America Refinance Rates were often rewarded with very low quotes. The best borrowers of money, with credit scores above 750, had a chance to refinance to some of the lowest levels of 2012. This opportunity has allowed some homeowners to sink more money into principal. This extra cash going towards principal will make it much easier to pay off a home.
Banks Stocks Struggle in April 2012
Although the banks stocks have lead the stock market for much of 2012 that was not the case in April. In fact, many of the big names had a very bad month. The XLF (Financials SPDR) was down around 1.4% and banking giant Bank of America (BAC) was down over 13% monthly heading into the final day of trading for April. It will be interesting to see if the banking stocks can turn around in May 2012 as some analysts feel these financials need to lead the market if we are going to see higher highs during the summer.
Those looking to buy a home in the western part of the United States will likely have to look at the direction of overall home prices and the strength of bank stocks. They may also want to look at California FHA loan limits as these limitations could greatly determine if a homebuyer can get the exact home they are looking for. There are many counties in which the loan limits have fluctuated quite a bit in the last several years.
Note that both Bank of America and Wells Fargo are both major players in the state of North Carolina. When Wells Fargo purchases Wachovia they moved many of their major executives to Charlotte, North Carolina. Remember that this does not mean that NC mortgage rates will be any different from mortgage rates in other parts of the United States.