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Louisiana Mortgage Rates for March 2019

In Louisiana, the average 30-year mortgage rate is 4.61%. The average 15-year mortgage rates is currently 4.11%. 5/1 adjustable-rate mortgages (ARMs) in the state carry an average initial rate of 4.03%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.61%–0.01%–0.27%
15-year fixed4.11%–0.01%–0.31%
5/1 ARM4.03%–0.01%–0.14%
Rates for a $200,000 loan with 20% down payment

With dozens of loan types and hundreds of lenders to choose from, searching for the right mortgage can feel overwhelming. We looked at rate data from across Louisiana to get homebuyers started on the right track. Before you put your credit score on the line, use our findings to figure out what an affordable quote looks like in the Pelican State today.

Best Mortgage Rates in Louisiana

This week, the lowest 30-year mortgage rate estimate in Louisiana stands at 3.88%. The best estimate on a 15-year mortgage is 3.13%, while the lowest initial rates for 5/1 ARMs start from 3.00%. These estimates are built on a theoretical mortgage for $200,000 and a down payment of 20%.

The actual mortgage rates you're quoted will be influenced by everything from your financial profile and choice of loan to the nature of the property you're buying. Besides this, each lender may make you a different offer based on its own business considerations. All these variables make it important for you to cast a wide net as you search for the right mortgage quote.

But before you start shopping, you may find it helpful to review the data we've gathered on the current outlook for mortgage rates across Louisiana's many lenders and cities. While requesting a mortgage quote doesn't cost you any fees, it does cost you valuable time in the homebuying process. Equipping yourself with an understanding of the local market will help you evaluate your options quickly and efficiently.

Current Mortgage Rate Forecast for Louisiana

New developments in early 2019 cast doubt on previous expectations that mortgage rates would generally rise in Louisiana and elsewhere. In January, the Federal Open Market Committee (FOMC) publicly pulled back from its original plans to introduce multiple rate hikes over the coming months.

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

While the FOMC did raise the target federal funds rate to 2.25%-2.50% in December 2018, the announcement of its new "wait and see" attitude is likely to set off another round of speculation and analysis from various experts. For borrowers in Louisiana, the immediate effect has been to relax mortgage rates and provide an unexpected opportunity to lock in more affordable financing.

This recent change in the rates forecast doesn't offer any certainty for borrowers, but it's definitely worth exploring if you plan on buying a home sometime this year. Rates determine your monthly payment, and the difference of a few dozen percentage points often translates into thousands of dollars saved or lost over the term of your mortgage. That said, you shouldn't rush a decision if you aren't quite prepared to deal with the upfront costs of a home loan.

Rates at Louisiana's Most Popular Mortgage Lenders

More and more borrowers are finding mortgages by searching online, but local banks continue to play a large part in the home financing industry. For Louisiana, we checked on 30-year loan estimates at each of five major banks doing business in the state to see how they stack up against each other and the state's average rate.

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

In our snapshot of rates from Louisiana's five largest banks, we saw a considerable amount of variation. While rates change from day to day, it appeared that some banks were much more likely to offer a lower rate than others. At the assumed purchase price of $200,000, the gap between the lowest rate we found and the highest represented a discrepancy of several thousand dollars in lifetime interest.

The interest rate on a mortgage is one of the most visible and important ways that borrowers can measure the loan's value. However, it's not the only cost that you have to account for. In addition to gathering several quotes to ensure a fair rate, mortgage seekers need to compare the respective closing costs for each offer to see how much they're spending upfront.

Comparing Home Loan Rates by City

Besides comparing major lender rates in Louisiana, we also looked at the potential costs of a typical mortgage in each of the state's major urban areas. While interest rates didn't change by much, real estate values did vary depending on the city we were looking at.

MSAAverage mortgage rateMedian home value
New Orleans-Metairie4.92%$214,939
Baton Rouge4.92%$191,205
Lafayette4.93%$160,429
Shreveport-Bossier City4.99%$157,548
Lake Charles5.00%$156,408
Average rate is for a 30-year mortgage with a 20% down payment.

Generally, larger cities in Louisiana experience higher average home prices. In comparing interest rates for a loan of the same amount in each area, we didn't find as much variance as there was among different mortgage lenders. While this means that homebuyers in the Pelican State should be able to find similar value on their mortgages wherever they live, the contrast in home values will definitely lead to higher monthly payments for buyers in larger cities like New Orleans.

Evaluating Your Mortgage Options: An Example in New Orleans

For many homebuyers, a lower mortgage rate is one of the best ways to reduce the ongoing cost of owning a home. While Louisiana hasn't been as badly affected by spiking real estate prices as places like New York, a home is still one of the most expensive purchases most people ever make. Finding the right loan type is a good way to ensure that your rate isn't any higher than it needs to be.

To illustrate, we can consider a potential home purchase in New Orleans for $200,000 with the usual assumption of a 20% down payment. If we take the standard route of a 30-year fixed-rate home loan, the current average rate of 4.92% leads to a minimum monthly loan payment of $852 and a 30-year interest bill totaling $146,400.

While most homebuyers obtain 30-year mortgages, most of them will also end up selling their homes well before the end of their loan term. If you know that you might move on from your house relatively soon, then you may be able to take advantage of the low initial rates available on a 5/1 ARM. In the first five years, a 5/1 ARM in New Orleans would result in monthly principal and interest of $767.

There are also alternative mortgage types that are tailored for people who plan to pay off their home in full. For instance, a 15-year fixed-rate mortgage allows you to pay off your home twice as quickly as a 30-year loan. This means higher payments but far less lifetime interest. At Louisiana's average rate, the starting monthly cost of a 15-year loan in our New Orleans example is $1,193, while lifetime interest is just $54,622.

In Louisiana, the average 30-year mortgage rate is 4.61%. The average 15-year mortgage rates is currently 4.11%. 5/1 adjustable-rate mortgages (ARMs) in the state carry an average initial rate of 4.03%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.61%–0.01%–0.27%
15-year fixed4.11%–0.01%–0.31%
5/1 ARM4.03%–0.01%–0.14%
Rates for a $200,000 loan with 20% down payment

With dozens of loan types and hundreds of lenders to choose from, searching for the right mortgage can feel overwhelming. We looked at rate data from across Louisiana to get homebuyers started on the right track. Before you put your credit score on the line, use our findings to figure out what an affordable quote looks like in the Pelican State today.

This week, the lowest 30-year mortgage rate estimate in Louisiana stands at 3.88%. The best estimate on a 15-year mortgage is 3.13%, while the lowest initial rates for 5/1 ARMs start from 3.00%. These estimates are built on a theoretical mortgage for $200,000 and a down payment of 20%.

The actual mortgage rates you're quoted will be influenced by everything from your financial profile and choice of loan to the nature of the property you're buying. Besides this, each lender may make you a different offer based on its own business considerations. All these variables make it important for you to cast a wide net as you search for the right mortgage quote.

But before you start shopping, you may find it helpful to review the data we've gathered on the current outlook for mortgage rates across Louisiana's many lenders and cities. While requesting a mortgage quote doesn't cost you any fees, it does cost you valuable time in the homebuying process. Equipping yourself with an understanding of the local market will help you evaluate your options quickly and efficiently.

New developments in early 2019 cast doubt on previous expectations that mortgage rates would generally rise in Louisiana and elsewhere. In January, the Federal Open Market Committee (FOMC) publicly pulled back from its original plans to introduce multiple rate hikes over the coming months.

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

While the FOMC did raise the target federal funds rate to 2.25%-2.50% in December 2018, the announcement of its new "wait and see" attitude is likely to set off another round of speculation and analysis from various experts. For borrowers in Louisiana, the immediate effect has been to relax mortgage rates and provide an unexpected opportunity to lock in more affordable financing.

This recent change in the rates forecast doesn't offer any certainty for borrowers, but it's definitely worth exploring if you plan on buying a home sometime this year. Rates determine your monthly payment, and the difference of a few dozen percentage points often translates into thousands of dollars saved or lost over the term of your mortgage. That said, you shouldn't rush a decision if you aren't quite prepared to deal with the upfront costs of a home loan.

More and more borrowers are finding mortgages by searching online, but local banks continue to play a large part in the home financing industry. For Louisiana, we checked on 30-year loan estimates at each of five major banks doing business in the state to see how they stack up against each other and the state's average rate.

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

In our snapshot of rates from Louisiana's five largest banks, we saw a considerable amount of variation. While rates change from day to day, it appeared that some banks were much more likely to offer a lower rate than others. At the assumed purchase price of $200,000, the gap between the lowest rate we found and the highest represented a discrepancy of several thousand dollars in lifetime interest.

The interest rate on a mortgage is one of the most visible and important ways that borrowers can measure the loan's value. However, it's not the only cost that you have to account for. In addition to gathering several quotes to ensure a fair rate, mortgage seekers need to compare the respective closing costs for each offer to see how much they're spending upfront.

Besides comparing major lender rates in Louisiana, we also looked at the potential costs of a typical mortgage in each of the state's major urban areas. While interest rates didn't change by much, real estate values did vary depending on the city we were looking at.

MSAAverage mortgage rateMedian home value
New Orleans-Metairie4.92%$214,939
Baton Rouge4.92%$191,205
Lafayette4.93%$160,429
Shreveport-Bossier City4.99%$157,548
Lake Charles5.00%$156,408
Average rate is for a 30-year mortgage with a 20% down payment.

Generally, larger cities in Louisiana experience higher average home prices. In comparing interest rates for a loan of the same amount in each area, we didn't find as much variance as there was among different mortgage lenders. While this means that homebuyers in the Pelican State should be able to find similar value on their mortgages wherever they live, the contrast in home values will definitely lead to higher monthly payments for buyers in larger cities like New Orleans.

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