Mortgage lenders consider many factors when setting Arkansas mortgage rates. A high credit score and large down payment typically qualify borrowers for the best rates.
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Your mortgage interest rate has a major impact on how much you pay each month for your mortgage. After all, mortgage loans are large loans, usually for hundreds of thousands of dollars, and most borrowers repay them over 30 years. As a result, even a small difference in rates makes a big difference in your payment amount.
Arkansas home buyers borrow an average of $228,000 for a home purchase, according to the latest data from the Federal Housing Finance Agency. With an interest rate of 7.25%, the monthly payment (principal and interest) on a loan of that size would be $1,555. Increase the rate to 7.75%, and the payment jumps to $1,633.
WEEKLY TRENDS AND INSIGHTS
On the week of October 24, 2024, the current average interest rate for a 30-year fixed-rate mortgage decreased NaN basis points from the prior week to %. The current average interest rate on a 15-year fixed-rate mortgage decreased NaN basis points from the prior week to %.
For context, a 30-year fixed-rate mortgage was NaN basis points higher a year ago. As for a 15-year fixed-rate mortgage, it was NaN basis points higher a year ago.
A mortgage rate is the price a lender charges for its mortgage products. Lenders, like other businesses, base pricing decisions on many considerations:
Two federal interest rates factor heavily into the rates lenders set for mortgage loans.
The first is the federal funds rate, which the Federal Reserve uses to grow or slow the economy as needed to maintain maximum employment, stable prices, and moderate long-term interest rates.
As the Fed increases or decreases its target federal funds rate, mortgage lenders increase or decrease their rates in response.
The second federal rate is called the prime rate, which is the lowest rate a lender offers its best-qualified borrowers. The Wall Street Journal and the Federal Reserve each survey America’s largest banks for their prime rates and then publish the aggregate. Lenders use the aggregate as a base rate for adjustable-rate mortgages and other loan products.
Economic conditions such as inflation or recession, employment rates, the housing market, and the financial markets affect rates in part by influencing demand for mortgage loans.
When consumers have more money and higher confidence in the economy, they’re more likely to want to buy a home. That increased demand drives up rates. Conversely, a weak economy slows demand, which results in lower rates.
Lenders use rates to influence borrowers’ loan decisions, often by reducing rates to promote certain loans. However, some promotional rates are only temporary, or the lender might charge higher loan fees to make up for them.
Your credit score and credit history impact your interest rate, as does the size of your down payment. A down payment of at least 20% and a credit score of 760 or more typically qualify you for the best rates.
Lenders consider the type of mortgage, as well as the size and location of the home you purchase when calculating your interest rate. Buying in a rural or urban area can also impact your rate.
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Arkansas’ only statewide program exclusively for first-time homebuyers is the Arkansas Development Finance Authority (ADFA) mortgage credit certificate program. When available, the program provides low-income first-time homebuyers with a tax credit for 35%, up to $2,000, of the mortgage interest they pay each year.
The program is currently unfunded, but the ADFA has other programs that can help first-time buyers purchase a home.
The ADFA Move-Up loan is a 30-year fixed-rate first mortgage for conventional, FHA, VA, and USDA financing. You can use it with other incentives, including the ADFA down payment assistance program.
ADFA’s down payment assistance program provides up to $15,000 toward down payment and closing costs for borrowers who use a Move-Up loan. The down payment assistance is provided as a second mortgage. The loan is repayable over 10 years, and you can get up to $1,000 of the proceeds as cash back for allowable expenses paid outside of closing.
The ADFA website has current information about homebuyer programs as well as a directory of approved lenders.
Assistance is also available locally for residents of a handful of municipalities. The programs typically have income limits:
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Mortgage rates drop or rise daily, reacting to changing economic conditions, central bank policy decisions, and investor sentiment. The table below shows recent trends in mortgage rates.
Product | Interest rate | APR | ||||
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General Information and Rate Disclosures: The listings that appear on this page are from companies that pay Credible compensation. This table does not include all companies or all available products. Displayed information is valid as of Nov 01, 2024 and assumes a customer with a 750 credit score borrowing a conventional loan for a single-family, primary residence, at or near zero discount points, and a 80% loan-to-home-value ratio. For products indicated as a jumbo (e.g. 30-year fixed jumbo rate), displayed information follows the same assumptions as a conventional loan but set at loan above the conforming limit. Here is an example of your payment based on a $400,000 loan amount, for each advertised loan term:
*Payments do not include amounts for taxes and insurance premiums, your actual payment obligation will be greater. The IP address of the customer accessing this page has been used to determine which U.S state should be used for pricing. In states where Credible does not have a license to operate, we are providing information about rates available in a nearby state. If you are viewing this page from an IP address in one of the states where Credible is not licensed, the rates displayed above are for consumers located in the neighbouring state shown below: IP state without license - Assumed location Missouri - Kansas Hawaii - California Rates, payments, and all information displayed are for informational purposes only and are subject to change without notice. This is not a credit decision or commitment to lend. Mortgage rates and terms you may qualify for depend on your individual financial circumstances. Payment Disclosures: All monthly payment amounts above assume on time monthly payments each month for the full duration of the loan term (e.g. 360 monthly payments for a 30 year loan). Displayed monthly payment amounts do not include amounts for property taxes and hazard insurance. Your actual monthly payment obligation will be higher. Amounts for borrower-paid mortgage insurance premiums are included in the monthly payment if (1) the loan amount is below the “conforming thresholds” set by Fannie Mae and Freddie Mac, and (2) the loan-to-home-value ratio is greater than 80%; mortgage insurance premiums are excluded from the monthly payment if either the loan amount is above the conforming thresholds or the loan-to-home-value ratio is less than or equal to 80%. Your actual payment obligation may be higher. “Conforming thresholds” depend on the county where the property is located. Fees Disclosures: The fee amounts shown above include estimates of loan costs and closing costs you may pay in connection with a mortgage transaction with the assumptions above. This includes fees the lender charges, including points and underwriting fees, and third party services the lender does not let you shop for such as a flood certification fee. It does not include title charges, recording costs, prepaids, initial escrow deposit, and other fees. ARM Disclosures: Variable rate products, such as ARMs, have interest rates that can change over the life of the loan. Changes in the interest rate will cause required payment amounts to change.” The displayed rate and payment will be in effect for the number of years in the product’s description (e.g. 5/1 ARM means the initial rate and payment are in effect for 5 years, 7/1 means they are in effect for 7 years, etc.), after which the rate and monthly payment will change every 12 months. Last updated on Nov 01, 2024. These rates are based on the assumptions shown here. Actual rates may vary. |
To get Arkansas’ best mortgage rate, it helps to shore up your finances and research your loan options:
Arkansas residents have access to the full range of mortgage loans. However, each loan type and lender has its own eligibility criteria, so you might not qualify for every type of loan your Arkansas mortgage lender offers.
Conventional
FHA
VA
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Jumbo
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