Best mortgage and refinance rates for September 22, 2020

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Borrowers with 700 credit scores were quoted an average rate of 3.628% on Monday to secure a 30-year fixed-rate purchase mortgage, according to a survey by Money of over 8,000 lenders in the United States. At this credit score, roughly the national average, the interest rate on a 30-year refinance was 4.488%. Our prices include discount points and are for borrowers who drop 20%.

30-year fixed-rate purchase mortgage
Price from September 21, 2020

Borrowers in Michigan got the lowest mortgage rate on Monday – at 3.421%. Those in Rhode Island had the highest average rate at 3.836%. Nationwide, borrowers with the highest creditworthiness of 740 and above reported average interest rates of 3.142%, while borrowers with creditworthiness of 640 or below received an interest rate of 4.791% – a range of 1.649 percentage points.

You may be able to negotiate a lower interest rate if you shop around or have other accounts with the lender. (The money picker for the best mortgage lenders can be found here.) Currently, some banks are increasing the rates they advertise to keep demand in check so you may be offered a lower rate if you contact us directly.

Freddie Mac’s widely cited Primary Mortgage Market Survey put the interest rate for the week ending September 17th at 2.87%, with 0.8 points paid for the week ending September 17th.

Refinancing rates today

Money’s survey also shows that the offered rate on a 30-year refinance for someone with a credit score of 740 on Monday was 3.791%. In September last year, the average mortgage rate (including fees) was 3.922%.

30-year fixed-rate mortgage refi
Price from September 21, 2020

A homeowner with a $ 200,000 mortgage balance who is currently paying 3.922% on a 30 year loan could potentially cut their monthly payment from $ 946 to $ 931 by funding at today’s lower interest rates. To determine if your mortgage refinance is worthwhile, you should also consider the closing fees you paid for your current mortgage, how much your new lender is asking, and how much longer you have your repayment term. (You can find our selection of the best lenders for refinancing here).

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What is currently still happening on the housing market?

The total proportion of tolerated mortgage loans hit its lowest level in five months, according to the Mortgage Bankers Association, falling from 7.01% to 6.93% in the week ended September 13. The proportion of Fannie Mae and Freddie Mac loans in the deferral programs decreased 10 basis points to 4.55% for the 15th consecutive week.

The percentage of deferred loans for private label securities, portfolio loans, independent mortgage lenders and custodians decreased during the week. The only category that rose was Ginnie Mae loans, which rose 3 basis points to 9.15%. It is also the second week in a row that the number of deferral requests for these loans has increased.

“While real estate data continues to show a fairly strong recovery, the labor market recovery appears to have slowed and we are seeing the impact of that slowdown on FHA and VA borrowers in the Ginnie Mae portfolio,” said Mike Fratantoni, chief economist for the MBA .

Mortgage forecast of the week

Cecelia Marlow, Vice President of the Federal Savings Bank of Chicago, on low mortgage rates:

Given the various economic indicators, interest rates will remain historically low. Given the uncertainty surrounding unemployment and the timing of a viable COVID-19 vaccine, as well as continued demand in the housing market, we will continue to see rates remain stable in the current range. As we get closer to the elections later in the year, we could see more intraday volatility. “

Read More: How Low Will They Go: 6 Mortgage Experts Predict The Future Of Interest Rates.

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