The mortgage offers advertised on Bankrate.com have become more generous over the past week. The average mortgage rate that Bankrate readers clicked on Thursday fell to 2.42%, down 3 basis points from the previous Thursday.
This “click-through” rate reflects purchase mortgages and refinancing under all conditions, including 30 and 15 year loans. Prices may include reduction points.
The softer offers come with caveats. For example, to get the best rate, you will typically need a credit score of 740 or higher and a down payment of 20% or higher. And many of the lower rates posted on Bankrate.com include discount points, a way to reduce the rate by paying more at close.
Mortgage rates are constantly changing. Rates rose rapidly in early March, then slowed later in the month. In April and May, rates reversed course, falling for five straight weeks, according to Bankrate’s national survey of lenders. The upward and downward trends reflect the unpredictability of the mortgage market as the economy continues its patchy recovery from the COVID-19 recession.
Even after their recent moves, rates remain much lower than they were before the coronavirus pandemic sent rates to record highs. This means that it may still be a good idea to refinance your mortgage. Be sure to shop around – you can save thousands of dollars by getting at least three deals.
Compare mortgage rates in your area now.
Average rate clicked on purchase loans
The average rate that Bankrate readers clicked on 30-year purchase mortgages fell to 2.6% from 2.63% seven days earlier. At this average rate, you’ll pay $ 400.34 per month in principal and interest for every $ 100,000 borrowed.
Average rate clicked on refinancing loans
The average rate Bankrate readers clicked for 30-year refinances fell to 2.61% from 2.63% the previous Thursday.
You can use Bankrate’s mortgage payment calculator to find your monthly payments and see the effects of additional payments. The tool will also help you determine the amount of interest you will pay over the life of the loan.
Compare the refinancing rates in your area now.