A 5.5% home loan: Mortgage lenders with the best rates this week, Dec. 29-Jan. 4

Core Insights - The top five mortgage lenders have reduced their rates to the sub-6% range, indicating a competitive market for mortgage loans [1][3] - Navy Federal leads the survey with an offered interest rate of 5.5% and an APR of 5.614% after accounting for discount points [3][4] - A significant difference of 1.185 percentage points exists between the top lender and the lowest-ranked lender, Third Federal [4] Mortgage Rate Trends - The current mortgage rates reflect a new low territory for the past few years, with the lowest offered rate now at 5.5% [3] - The survey included 16 lenders, with notable exclusions from the top 10 such as Wells Fargo, Bank of America, and Rocket Mortgage [3] Importance of APR - The annual percentage rate (APR) is emphasized as the most critical figure for borrowers, as it encompasses both the interest rate and lender fees [8] - Borrowers are advised to focus on APR rather than just the offered interest rate to understand their total borrowing costs [8] Shopping for Mortgage Rates - Shopping around for mortgage rates can lead to significant savings, potentially up to $44,000 over the life of a 30-year loan [7] - It is recommended that borrowers request quotes from multiple lenders without discount points to facilitate accurate comparisons [14] Special Offers and Discounts - Lenders are increasingly offering special discounts on interest rates and fees, with examples such as Citi Mortgage providing $500 off closing costs [12] - Borrowers are encouraged to inquire about any available concessions if a lender is not currently promoting discounts [13]