Mortgage rates declined for many lenders this week, according to a survey by Yahoo Finance. Six of the top ten home loan providers offered rates in the sub-6% range. The survey ranks lenders by annual percentage rate, which includes lender fees.
The ten mortgage lenders with the best interest rates this week were determined by a survey of the lowest mortgage rates on 30-year, fixed-rate conventional loans. The following numbers are each lender's annual percentage rate.
Navy Federal Credit Union reported 5.488%. PenFed Credit Union followed with 5.584%. Citi Mortgage showed 5.594%. Chase Home Loans listed 5.692%. Better had 5.947%. Rate posted 5.995%. Wells Fargo came in at 6.035%. Truist was 6.061%. Bank of America offered 6.145%. U.S. Bank rounded out the list with 6.159%.
Two credit unions led the survey this week: Navy Federal and PenFed. Both advertised 30-year fixed-rate mortgages below 5.5%. With fees, the APRs remained near or just below 5.5%.
Competition intensified. Bank of America and Wells Fargo entered the top ten lenders with the lowest rates, displacing Citizens Bank and Fifth Third Bank from the leaderboard.
Of the 16 lenders surveyed on January 12, Citizens Bank, Flagstar Bank, PNC, Fifth Third, Rocket Mortgage, and Third Federal did not make the top ten, based on annual percentage rates.
An APR difference of 1.311 percentage points separated the top lender, Navy Federal, from Third Federal, which ranked at the bottom of the list.
These sample mortgage rates were found on lender websites and are based on generic assumptions. Lenders advertise 30-year mortgage rates based on varying credit scores, down payments, and other credit qualifications. Location also affects mortgage rates.
Individual rates will be based on specific credit profiles. For lenders requiring additional borrower information to provide a sample rate, the survey supplied a median home value and credit score, with a 20% down payment based on a home located in the Midwest.