Mortgage rates declined this week for many lenders surveyed by Yahoo Finance. Six of the top ten home loan providers are now offering rates in the sub-6% range. The survey ranks lenders by annual percentage rate, which incorporates lender fees.
The ten mortgage lenders with the best interest rates for 30-year fixed-rate conventional loans this week are listed by APR. Navy Federal Credit Union leads with 5.488%. PenFed Credit Union follows at 5.584%, and Citi Mortgage is at 5.594%. Chase Home Loans offers 5.692%, Better is at 5.947%, and Rate provides 5.995%. Wells Fargo appears with 6.035%, Truist at 6.061%, Bank of America at 6.145%, and U.S. Bank at 6.159%.
Two credit unions, Navy Federal and PenFed, top the survey. Both advertise 30-year fixed-rate mortgages below 5.5%. Including fees, their APRs remain near or just under 5.5%.
Competition intensified as Bank of America and Wells Fargo entered the top ten, displacing Citizens Bank and Fifth Third Bank. Of sixteen lenders surveyed on January 12, Citizens Bank, Flagstar Bank, PNC, Fifth Third, Rocket Mortgage, and Third Federal did not rank in the top ten based on APR.
The APR difference between the top lender, Navy Federal, and the bottom-ranked Third Federal is 1.311 percentage points.
These sample mortgage rates are based on generic assumptions from lender websites. Lenders advertise rates varying by credit scores, down payments, and location. The survey used median home values, credit scores, and 20% down payments for Midwest homes when required.
Securing the lowest mortgage rate involves shopping around, which could save borrowers an average of $44,000 over a 30-year loan, according to Realtor.com analysis. The APR, including interest and fees, is the key metric for comparing costs.
Lenders often include optional discount points to lower rates. Each point costs 1% of the loan amount and typically reduces the rate by about 0.25%. Borrowers can decline points, resulting in a higher rate.
Special discounts are increasingly common. Chase Home Loans introduced limited-time rate discounts earlier this year. On January 12, Citi Mortgage was offering $500 off closing costs. Borrowers are advised to ask lenders for concessions and mention they are comparing multiple offers.
For accurate comparisons, shoppers should request quotes with zero discount points from at least three lenders and focus on APR. The Yahoo Finance methodology sorts lenders by APR, encompassing interest rates and all lender fees.