The best mortgage and refinancing rates for September 26-27
On Thursday, borrowers with 700 credit scores got an average rate of 3.578% on a 30-year fixed-rate purchase mortgage, according to Money’s latest survey of more than 8,000 lenders in the United States. At this credit score, roughly the national average, the rate for a 30-year refinance was 4.494%. Our rates include discount points and are intended for borrowers who pay 20% down payment.
|30-year fixed rate purchase mortgage|
|September 24, 2020 rate|
Illinois borrowers were quoted the lowest mortgage rates Thursday at 3.402%. Those in Texas registered the highest average rate, at 3.83%. Nationally, borrowers with the highest credit scores, 740 and above, were rated at average rates of 3.123%, while those with credit of 640 or less received rates of 4.78. %, or a difference of 1.657 percentage point.
You may be able to negotiate a lower rate if you shop around or have other accounts with the lender. (Money’s choices for the best mortgage lenders are here.) Currently, some banks are increasing advertised rates to control demand, so a lower rate may be offered if you contact directly.
Freddie Mac’s widely cited primary mortgage market survey put rates at 2.90% with 0.8 points paid for the week ending September 24. weekly The survey reflects borrowers who put 20% less on compliant loans and have excellent credit.
Money’s most recent survey also shows that the offered rate for a 30-year refinance for someone with a credit score of 740 was 3.81% on Thursday. Last September, the average mortgage rate (including fees) was 3.922%.
|30 year fixed rate mortgage refi|
|September 24, 2020 rate|
A homeowner with a mortgage balance of $ 200,000 who currently pays 3.922% on a 30-year loan could potentially reduce their monthly payment from $ 946 to $ 933 by financing at today’s lowest rates. Determine if it’s worth refinancing your mortgage, also consider the closing costs you paid on your current mortgage, the amount charged by your new lender, and the remaining term of your loan. (Our choices for the best lenders for refinancing are here).
Housing Week in review
Last week, rather positive news in the housing market was seen again as buyers remained active despite the lingering effects of the COVID-19 pandemic.
Owners’ equity grew 6.6% year-over-year in the second quarter of 2020, according to a report from CoreLogic. Overall, the total market gained $ 620 billion in home equity, or $ 9,800 per owner on average. At the same time, the number of mortgages that were underwater – where borrowers owe more than the home’s value – fell 15% to 1.7 million properties.
Homeowners and buyers alike continued to benefit from low interest rates, as mortgage application volume rose 6.8% week over week. Requests for purchase loans increased 3% while requests for refinancing increased 9%, according to the Mortgage Bankers Association. Both remained well above levels of a year ago, increasing by 25% and 86% respectively.
The MBA also reported that the number of homeowners in forbearance programs fell to 6.93% of all mortgages, falling below 7% for the first time since April. Declines were recorded in all types of loans except those backed by Ginnie Mae (i.e. FHA and VA loans), which saw an increase not only in the number of loans in the plans, but also the number of new abstention requests.
Home sales remain strong, with existing home sales reaching an annual adjusted rate of 6 million units in August. Year-over-year sales increased 10.5%, to their highest level since December 2006. Double-digit gains were seen in all four regions, according to a report by the National Association of Realtors. studied. The rush to buy homes coupled with an already tight housing stock led to an 11.4% increase in the median price of existing homes, from $ 278,800 in August of last year to $ 310,600.
New home sales are also showing growth, with new home sales for August increasing 4.8% month-over-month to an annual adjusted rate of 1.011 million homes, according to the US Census Bureau. This is an increase of 43% from last August and 15% since January, according to the National Association of Home Builders.
While home sales have rebounded well since the pandemic caused widespread lockdowns, the lack of housing supply could dampen the housing market boom. According to NAR, the total housing stock is down 18.6% from August last year. At the current rate of sales, there is only 3 months of unsold stock on the market.
Since mid-March, when the closures related to the pandemic began, there have been almost 400,000 fewer homes for sale than in the same period last year, according to a report from Realtor.com. This represents a 39% drop in the number of homes listed. New listings on the market this week were down 15% from the same week last year.
Lack of inventory, combined with continued demand from homebuyers and low interest rates, has caused home prices to continue to rise. Median listing prices rose 11.1% year-on-year, more than double the growth rate seen in January this year. The pace of sales has also increased, with homes selling 12 days faster than a year ago.