Today’s Best Mortgage and Refinance Rates – Nov 24th

The proportion of borrowers who defer mortgage payments has risen for the first time since June. Meanwhile, mortgage rates have increased since yesterday.

Mortgage rates today

The average rate on a 30-year fixed-rate purchase mortgage was 3.412% on Monday.

Money mortgage rates include data from over 8,000 lenders in the United States and are updated daily. These rates include discount points and represent what a borrower would have quoted with a 20% down payment and 700 credit scores – roughly the national average of the FICO score.

Mortgage rates for November 24, 2020
Credit type Average rate
30 year fixed loan 3,412%
15 year fixed loan 2.427%
30 year FHA loan 3.565%
30 year VA loan 3.561%
30 year jumbo loan 3.727%
Source: Money | Date: November 23, 2020 | Rates assume a credit score of 700. out

How Does Anyone Qualify For The Best Mortgage Rates?

Mortgage rates vary from state to state. On Monday, borrowers in West Virginia were named the lowest mortgage rate with 700 loans – 3.151%. People searching for mortgages in Mississippi saw the highest average rate at 3.875%.

Nationwide, borrowers with the highest credit score of 740 and above reported an average of 2.931%, while borrowers with a credit score of 620 or below reported an interest rate of 4.811% – a range of 1.88 percentage points.

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

Freddie Mac’s much-cited Primary Mortgage Market Survey put interest rates at 2.72% at 0.7 points for the week ending November 19, a decrease of 0.12 percentage points from 2.84% the previous week and the 13th record low this year corresponds. The weekly mortgage buyer survey reflects borrowers who forego 20% of compliant loans and have excellent credit ratings.

Today’s Mortgage Refinancing Rates

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 3.358%. In November last year, the average mortgage rate (including fees) was 3.874%.

Refinancing rates for November 24, 2020
Credit type Average rate
30 year fixed loan 3,358%
15 year fixed loan 2,784%
30 year FHA loan 3,638%
30 year VA loan 3.644%
30 year jumbo loan 3.56%
Source: Money | Date: November 23, 2020 | Rates start from a credit score of 740. out

A homeowner with a $ 200,000 mortgage balance currently paying 3.874% over a 30 year period could potentially cut their monthly payment from $ 940 to $ 692 by funding at the current lower interest rates. To determine if your mortgage refinance is worthwhile, also consider the closing fees you paid on 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).

What is still happening on the housing market today?

Approximately 2.7 million homeowners are in mortgage forbearance plans after the percentage of borrowers taking advantage of the loan deferral program rose slightly to 5.48%, according to the latest estimate by the Mortgage Bankers Association. The surge, recorded in the week ending November 15, was the first since early June.

The option to suspend mortgage payments without penalty was introduced under the Coronavirus Aid, Relief and Economic Security Act passed by Congress in March. Legislators wanted to prevent people from losing their homes if they struggled with on-time mortgage payments due to the pandemic.

At its peak in June, 4.3 million borrowers had chosen the plans – or 8.55% of mortgage borrowers.

Borrowers began to exit the program as parts of the economy reopened over the summer. Then there was a big jump in exits last month as many borrowers hit six months in the program. Borrowers can stay on deferral for up to a year but must contact their lender to renew the plan after six months. Currently, more than three quarters of forbearance loans are in the renewal phase.

The recent surge is the result of a slowing in forbearance exits, as well as an increase in the proportion of government-supported loans such as FHA and VA loans entering forbearance.

“Incoming housing market data is still quite strong, with existing home sales reaching their highest level since 2005 and housing stock in the market hitting record lows,” said Mike Fratantoni, chief economist at MBA, a trade organization. “However, the renewed weaknesses in recent labor market data suggest that many homeowners continue to experience dire straits due to the pandemic and continue to need the support that the indulgence provides.”

Earlier this month, the Census Bureau estimated that 3.8 million homeowners had no confidence in their ability to make upcoming mortgage payments. Surveys also show that many homeowners are unaware that forbearance is an option.

Expert Mortgage Forecast of the Week

Expert opinions on what’s next.

All of the factors that are currently driving demand will continue through to the end of the year. Interest rates make it a great time to buy, and low inventory makes it a great time to sell. This one-two punch will continue to affect a very active market. “

– Kris Lindhal, CEO and Founder of Kris Lindhal Real Estate, on whether the demand for homebuyers will remain high. For more information on the housing market, see: Everyone wants to buy a house now. 9 experts predict how long demand will rise.

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