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Alaska Mortgage Rates for April 2019

The 30-year mortgage rate average in Alaska is currently 4.32%. 15-year mortgages in the state average at 3.82%, while 5/1 adjustable-rate mortgages (ARM) are offered at an average of 4.11%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.32%–0.01%–0.52%
15-year fixed3.82%–0.03%–0.63%
5/1 ARM4.11%–0.04%+0.01%
Rates for a $200,000 loan with 20% down payment

Most people find that getting a mortgage is an essential part of the homebuying experience. Rising property values make it increasingly important to get an affordable interest rate on your home loan. We looked at rate averages and lender quotes in Alaska to help you understand what the best mortgage offers should look like.

Best Mortgage Rates in Alaska

The lowest available rate for a 30-year mortgage in Alaska is 4.00%. The best rates for 15-year mortgages are generally lower, starting at 3.38%. Finally, 5/1 ARM rates in Alaska can go as low as 3.63%.

Mortgage rates are a product of several different factors working together. As a mortgage applicant, you submit information on your income, credit score, and current debt so that lenders can assess how risky it would be to make you a loan offer. Beyond personal details, lenders also consider their business priorities and conditions in the market—elements that are harder for individual borrowers to manage.

Since it's possible for the interest rate on mortgages to vary by lender and the timing of your application, we analyzed Alaska's rates from these perspectives to see what the precise numbers look like. By understanding the relationship between interest rate, lender choice, and market timing, you can improve your chances of obtaining a mortgage quote that fits into your budget.

Current Mortgage Rate Forecast for Alaska

For 2019, mortgage rates in Alaska and the rest of the country may not rise as much as previously expected. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach before continuing its original plan to continue raising the federal funds rate over the next 12 months.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This deviates from market expectations at the end of 2018, when the FOMC raised the target rate by 25 basis points. Currently set at 2.25%-2.50%, the federal funds target rate directly impacts the prices that banks pay to fund their operations. Because the federal funds rate indirectly impacts the interest rates that banks offer to consumers, the FOMC's periodic announcements are regarded as a bellwether for future rate trends.

For homebuyers in Alaska, the news of stabilizing rates creates some breathing room to shop around. In a rising rate environment, people often rush to secure financing before costs get too high. With the FOMC announcing its intent to monitor the market before carrying out future hikes, buyers can take comfort in knowing that mortgage rates won't explode while they do the necessary legwork to find the right property and lender.

Rates at Alaska's Most Popular Mortgage Lenders

In a time of changing rates, lenders must spend some time adjusting their numbers to new conditions in the market. This creates an opportunity for borrowers to find deals by collecting quotes from more than one lender. In Alaska, we looked at mortgage rate quotes from some of the state's largest banks.

Column graph comparing 30-year mortgage rates at major Alaska banks

As current conditions would suggest, mortgage lender rates are currently in a state of change. Even at the largest institutions, which usually match each other closely, the interest rates we found tended to vary widely. These rates will gradually adjust to similar levels as the industry figures out the "ideal" market average, but for now they continue to show how you can benefit from thoroughly vetting your selection of lenders.

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Comparing Home Loan Rates by City

Given this diversity of rates among different companies, we wanted to see if a borrower's location could also change mortgage costs. In Alaska, it turned out that the value of property is a bigger driver of such costs than variation in local interest rates.

MSAAverage mortgage rateMedian home value
Anchorage4.50%$322,851
Fairbanks4.68%$255,224
Juneau4.57%$371,534
Ketchikan4.52%$283,676
Average rate is for a 30-year mortgage with a 20% down payment.

On average, each of Alaska's major cities is home to substantially higher home prices than most parts of the Lower 48. This stands in contrast to the fact that Alaska's mortgage rates are rather similar to rates in the rest of the country. Since the monthly payment for a home loan is calculated from both your interest rate and the amount you originally borrow to buy your house, the average Alaskan homeowner likely pays higher mortgage costs than most Americans.

Evaluating Your Mortgage Options: An Example in Anchorage

Aside from the factors we've considered so far, the most effective way to control the rate you get in a mortgage is by selecting an appropriate loan structure. While many people settle for the usual 30-year fixed-rate loan, lenders offer a variety of terms and rate structures that can help you tailor the financing to your future plans.

To illustrate, let's say you're looking to purchase a smaller home in Anchorage for $200,000 with a 20% down payment. At the city's current average rate, a 30-year loan would cost you at least $811 every month. In total, the mortgage interest would sum up to $131,851 after 30 full years of payment. However, few families end up in the same home for 30 years.

If you're thinking about moving just a few years into your mortgage, the lower rate of a 5/1 ARM might help you save a good amount on interest. In this example, a 5/1 ARM at the state's average rate would cost $775 per month. However, this figure could increase later on: "5/1" indicates that your fixed rate ends after the first five years of repayment, to be followed by a moving rate that adjusts each year thereafter.

For people who prefer both stability and rapid repayment, 15-year mortgages are a popular alternative too. In Anchorage, a 15-year mortgage costs $1,170 per month but just $50,442 in lifetime interest. If you can handle the higher monthly expense, this is a great way to reduce the long-term cost of your mortgage.

The 30-year mortgage rate average in Alaska is currently 4.32%. 15-year mortgages in the state average at 3.82%, while 5/1 adjustable-rate mortgages (ARM) are offered at an average of 4.11%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.32%–0.01%–0.52%
15-year fixed3.82%–0.03%–0.63%
5/1 ARM4.11%–0.04%+0.01%
Rates for a $200,000 loan with 20% down payment

Most people find that getting a mortgage is an essential part of the homebuying experience. Rising property values make it increasingly important to get an affordable interest rate on your home loan. We looked at rate averages and lender quotes in Alaska to help you understand what the best mortgage offers should look like.

The lowest available rate for a 30-year mortgage in Alaska is 4.00%. The best rates for 15-year mortgages are generally lower, starting at 3.38%. Finally, 5/1 ARM rates in Alaska can go as low as 3.63%.

Mortgage rates are a product of several different factors working together. As a mortgage applicant, you submit information on your income, credit score, and current debt so that lenders can assess how risky it would be to make you a loan offer. Beyond personal details, lenders also consider their business priorities and conditions in the market—elements that are harder for individual borrowers to manage.

Since it's possible for the interest rate on mortgages to vary by lender and the timing of your application, we analyzed Alaska's rates from these perspectives to see what the precise numbers look like. By understanding the relationship between interest rate, lender choice, and market timing, you can improve your chances of obtaining a mortgage quote that fits into your budget.

For 2019, mortgage rates in Alaska and the rest of the country may not rise as much as previously expected. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach before continuing its original plan to continue raising the federal funds rate over the next 12 months.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This deviates from market expectations at the end of 2018, when the FOMC raised the target rate by 25 basis points. Currently set at 2.25%-2.50%, the federal funds target rate directly impacts the prices that banks pay to fund their operations. Because the federal funds rate indirectly impacts the interest rates that banks offer to consumers, the FOMC's periodic announcements are regarded as a bellwether for future rate trends.

For homebuyers in Alaska, the news of stabilizing rates creates some breathing room to shop around. In a rising rate environment, people often rush to secure financing before costs get too high. With the FOMC announcing its intent to monitor the market before carrying out future hikes, buyers can take comfort in knowing that mortgage rates won't explode while they do the necessary legwork to find the right property and lender.

In a time of changing rates, lenders must spend some time adjusting their numbers to new conditions in the market. This creates an opportunity for borrowers to find deals by collecting quotes from more than one lender. In Alaska, we looked at mortgage rate quotes from some of the state's largest banks.

Column graph comparing 30-year mortgage rates at major Alaska banks

As current conditions would suggest, mortgage lender rates are currently in a state of change. Even at the largest institutions, which usually match each other closely, the interest rates we found tended to vary widely. These rates will gradually adjust to similar levels as the industry figures out the "ideal" market average, but for now they continue to show how you can benefit from thoroughly vetting your selection of lenders.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company

Comparing Home Loan Rates by City

Given this diversity of rates among different companies, we wanted to see if a borrower's location could also change mortgage costs. In Alaska, it turned out that the value of property is a bigger driver of such costs than variation in local interest rates.

MSAAverage mortgage rateMedian home value
Anchorage4.50%$322,851
Fairbanks4.68%$255,224
Juneau4.57%$371,534
Ketchikan4.52%$283,676
Average rate is for a 30-year mortgage with a 20% down payment.

On average, each of Alaska's major cities is home to substantially higher home prices than most parts of the Lower 48. This stands in contrast to the fact that Alaska's mortgage rates are rather similar to rates in the rest of the country. Since the monthly payment for a home loan is calculated from both your interest rate and the amount you originally borrow to buy your house, the average Alaskan homeowner likely pays higher mortgage costs than most Americans.

Comments and Questions

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company
Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company