Interest Rates and Our Community Banks Main Photo

Interest Rates and Our Community Banks

Posted: August 18, 2020 by John Moore

Earlier this year we sent out information related to the then current interest rate market for 30-year conventional mortgages knowing that interest rates at that time were attractive for both refinancing borrowers as well as for those folks contemplating a home purchase. Well…that information was pre-pandemic and is now ancient history.

So, here is a short update on where the market is currently.

Along with the current interest rate information at the bottom of this message, we want to re-emphasize how fortunate we are in Amarillo to have outstanding community banks that serve our local mortgage needs, whether for refinancing current loans, or providing funds for purchase money mortgages.

To make this point, the following graph illustrates the relationship between the 10-year treasury bill and the 30-year conventional mortgage interest rate. Over the past 20 years, the 30-year mortgage rate has averaged 1.78% above the 10-year treasury bill rate. However, on July 31, 2020 that spread was 2.44%, resulting in 30-year mortgage rates of 2.99% being quoted on average across America.


This is not the case in Amarillo. At that same time, community banks were operating off a lower spread of 1.95%, much closer to the traditional relationship between the 10-year treasury bill and the 30-year conventional mortgage rate. Here are the rates borrowers can expect to see in the Amarillo market:

Purchase Money Mortgages and Straight Refinances (not cash-outs)

30-year mortgages – 2.625%*

15-year mortgages – 2.25%*


Again, consumers in Amarillo are fortunate to have multiple community banks to serve their mortgage needs.


*Rates could be higher or lower depending upon a borrowers specific circumstances; i.e., credit score, down payment %, etc.

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