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Arkansas Mortgage Rates for April 2019

The current average rate for a 30-year mortgage in Arkansas is 4.52%. The state average for 15-year mortgages is currently 4.04% and 4.34% for the average 5/1 adjustable-rate mortgage (ARM).

Loan typeAverage rateWeekly change3-month change
30-year fixed4.52%–0.02%–0.22%
15-year fixed4.04%–0.02%–0.21%
5/1 ARM4.34%+0.01%–0.01%
Rates for a $200,000 loan with 20% down payment

Most homebuyers need to apply for a mortgage as part of the purchase process. With home prices in the hundreds of thousands, finding an acceptable interest rate on your home loan is critical to living affordably. To help you determine what a good mortgage rate looks like in Arkansas today, we compiled information from the state's biggest lenders and real estate markets.

Best Mortgage Rates in Arkansas

Right now, the lowest rate for a 30-year mortgage in Arkansas is at 4.00%. The best rate for a 15-year mortgage is 3.25%, and 5/1 ARM interest rates start at 3.50%.

As a mortgage applicant, you're bound to see a range of different offers from the lenders you choose. While it may seem logical to run with the lowest rate quote you receive, you should also be thinking about how the timing of your application and your loan type have impacted your quotes. For instance, understanding the current market environment can go a long way towards helping you avoid unnecessarily high rates.

To save you the time and effort of researching these factors on your own, we provide an up-to-date summary of rates in Arkansas for some of the most popular loan types, lenders, and cities. We will see that some of these details have a greater impact on your rate than others. But first, we'll take a look at how mortgage rates have moved in the recent past—and where they'll head in the next year.

Current Mortgage Rate Forecast for Arkansas

For 2019, mortgage rates in Arkansas and the rest of the country might not rise as much as previously forecasted. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach when considering future rate hikes, to guard against the risk of hiking too quickly.

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

This represents a significant divergence from market expectations at the end of 2018, when the FOMC raised the target rate by 25 basis points. Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the cost that banks pay to borrow money for their operations. Due to the impact of the federal funds rate on consumer loans and deposit accounts, the FOMC's announcements are regarded as indicators of the direction of future rate movements.

For homebuyers in Arkansas, this creates some breathing room for a more deliberate shopping process. In times of rising rates, people often rush to secure financing before loan costs get too high. With the FOMC announcing its intent to monitor the market, buyers can take comfort in knowing that mortgage rates are less likely to significantly appreciate while they shop for a home.

Rates at Arkansas's Most Popular Mortgage Lenders

In our analysis of current mortgage rates for Arkansas, we began by comparing interest rates from the most popular mortgage lenders active in the state. While these rates are likely to change over time, they can help us figure out whether lenders are in close competition or follow different pricing strategies.

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

At the time of our analysis, we found a large margin in the different mortgage rates Arkansas banks were willing to provide. The gap between the lowest and highest rate for a $200,000 purchase mortgage was 50 basis points, or half a percent. Not every state experiences a range of rates this wide, and there's no guarantee that this situation will last if market conditions force banks to adjust.

That said, the rates above were given for a hypothetical loan using basic assumptions about price, down payment, and credit score. Your own rates will change significantly according to the details you provide, and no single lender is guaranteed to offer the best home loan rates to every borrower that applies. Based on the wide range of rates we found, the best policy is to request quotes multiple lenders in order to ensure you see every option.

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Comparing Home Loan Rates by City

Our research on Arkansas home loans also took us around the state, comparing rates in different neighborhoods. We wanted to see whether the average rate of a typical 30-year mortgage in Little Rock is different from that of Texarkana. However, location played less of a role in determining rates than we expected.

MSAAverage mortgage rateMedian home value
Little Rock-North Little Rock-Conway4.64%$162,005
Fayetteville-Springdale-Rogers4.58%$186,532
Fort Smith4.56%$115,666
Texarkana4.78%$113,568
Average rate is for a 30-year mortgage with a 20% down payment.

Even with rates staying about the same, the diversity of property prices in Arkansas's cities means that the cost of a mortgage will still depend on your location. With local real estate values significantly higher than the national median, homebuyers in Arkansas should be mindful of minimizing their mortgage rate as a alternate way of reducing their costs.

Evaluating Your Mortgage Options: An Example in Little Rock

While lenders may base their quoted rates on a dozen variables, there's at least one way for you to lower your rates for certain. Choosing a nonstandard loan type like the 15-year fixed rate mortgage or an adjustable-rate ARM loan guarantees that you'll receive lower rates that you would with a typical 30-year mortgage. However, you need to make sure that the loan you pick makes sense for your situation before diving in.

As an example, consider a homebuyer who is purchasing a $200,000 property near Little Rock with a 20% down payment. At the current average, monthly costs for a 30-year mortgage will start at $814. After 30 years, the interest on this loan amounts to $132,879. Changing the mortgage type allows you to change either of these numbers to fit your own goals.

Many families choose to sell and move out long before the end of a 30-year term. In these scenarios, an ARM loan provides a discounted temporary rate at the cost of potential rate increases later on in the loan. Homeowners who plan on moving soon can take advantage of this to reduce costs and exit the loan before rates increase. If we apply current Arkansas rates for a 5/1 ARM to our hypothetical purchase, it would cost $796 per month.

On the other hand, buyers settling in for the long haul might be more interested in shrinking the total cost of interest on their home loans. Right now, a 15-year fixed-rate loan in Little Rock would cost $1,187 per month for our example, but only $53,608 in total interest. By paying more from month to month, you clear the total debt twice as fast and ultimately save thousands in interest.

The 30-year mortgage rate average in Arkansas is currently 4.52%. 15-year mortgages in the state average at 4.04%, while 5/1 adjustable-rate mortgages (ARM) are offered at an average of 4.34%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.52%–0.02%–0.22%
15-year fixed4.04%–0.02%–0.21%
5/1 ARM4.34%+0.01%–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 Arkansas to help you understand what the best mortgage offers should look like.

According to our data, the best rate currently published for a 30-year mortgage in Arkansas is 4.00%. 15-year fixed rates go as low as 3.25%, while 5/1 ARM rates reach 3.50%.

When setting mortgage rates for an individual applicant, lenders look at many factors that include not only your personal credit history and income information but also the lender's business needs and the level of competition in the market. This means that it's possible to receive significantly different quotes depending on when and where you apply for a home loan. On top of this, your choice of loan type will also impact the base interest rate.

To give you a more detailed picture of how these different variables can affect mortgage rates, we collected rate information from dozens of lenders and locations in Arkansas. Knowing what to expect in the market should help you better evaluate the quotes that you're offered. We've also provided a brief summary of how mortgage rates are expected to change in the next year.

For 2019, mortgage rates in Arkansas and the rest of the country might not rise as much as previously forecasted. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach when considering future rate hikes, to guard against the risk of hiking too quickly.

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

This represents a significant divergence from market expectations at the end of 2018, when the FOMC raised the target rate by 25 basis points. Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the cost that banks pay to borrow money for their operations. Due to the impact of the federal funds rate on consumer loans and deposit accounts, the FOMC's announcements are regarded as indicators of the direction of future rate movements.

For homebuyers in Arkansas, this creates some breathing room for a more deliberate shopping process. In times of rising rates, people often rush to secure financing before loan costs get too high. With the FOMC announcing its intent to monitor the market, buyers can take comfort in knowing that mortgage rates are less likely to significantly appreciate while they shop for a home.

As prevailing interest rates change, mortgage lenders adjust their loan offers to varying degrees. For homebuyers, this presents an opportunity to save by comparing offers from several banks. We looked at estimated rates from several of Arkansas's largest mortgage lenders based on a typical home price and down payment.

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

We saw a small amount of rate variation among Arkansas's top home loan lenders, although this may change as the interest rate situation in the U.S. continues to shift. There was about 25 basis points of difference between the lowest and highest mortgage rates reported by the banks we looked at. While that's not as large a swing as we've seen in other states, it's still enough to reduce—or increase—your interest expenses by thousands of dollars in the long term.

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Comparing Home Loan Rates by City

We also researched how mortgage rates in Arkansas differed from city to city. In comparing interest rates for homebuyers from Little Rock to Carson City, we saw similar rates on offer from lenders throughout the Natural State. However, a similar examination of home values showed that median property costs change significantly based on where you choose to buy.

MSAAverage mortgage rateMedian home value
Little Rock-Henderson-Paradise4.53%$258,895
Reno4.50%$328,991
Gardnerville Ranchos4.50%$336,677
Carson City4.56%$233,448
Average rate is for a 30-year mortgage with a 20% down payment.

Even with rates staying about the same, the diversity of property prices in Arkansas's cities means that the cost of a mortgage will still depend on your location. With local real estate values significantly higher than the national median, homebuyers in Arkansas should be mindful of minimizing their mortgage rate as a alternate way of reducing their costs.

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.

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Get Multiple Mortgage Offers at Once
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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

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