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Mortgages

Mortgage Rates

Today's Best Mortgage & Refinance Rates for June 1, 2020

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With mortgage rates setting a new record low last week, real estate markets across the country continue on a slow path to recovery, with some markets experiencing a faster turn around than others.

Cities such as Seattle, Austin, and Washington D.C. have bounced back fairly quickly from their mid-April pandemic-related lows, according to Forbes Magazine, thanks in part to the tech industries in the area which weren't as affected by the furloughs and layoffs that hit other industries such as retail and food and beverage. According to data from Redfin, a Seattle-based real estate brokerage, consistently low mortgage rates have spurred home-buying demand to a level 17% higher than pre-COVID levels for the week ending May 17. (Figures are from before current unrest began across the country.)

On Thursday Freddie Mac reported that the average interest rate for a 30-year fixed-rate mortgage had fallen to a record low for the third time in 2020. At the same time, the National Association of Realtors said home list prices were 3.1% above their levels a year ago.

Refinancing has maintained a high pace throughout the recovery, currently making up two-thirds of all mortgage applications, according to data from the Mortgage Bankers Association (MBA). Refinancing activity is more than double its pace a year ago.

Average Mortgage Rates

The national average interest rate for a 30-year fixed-rate mortgage was 3.15% with 0.8 points paid, for the week ending May 28, according to Freddie Mac.

That’s 0.08 percentage points below the previous all-time low of 3.23% set April 30.

A year ago the average rate was 3.99%. A homeowner with a $250,000 mortgage balance paying 3.99% on a 30-year loan could cut their monthly payment from $1,192 to $1,074 by financing at today’s lower rates. (It is important to note that refinancing involves closing fees and will reset the clock on your mortgage, meaning you will have to make payments longer.)

According to Freddie Mac the average rate for a 15-year fixed-rate mortgage was 2.62%, while the average rate on a 5-year adjustable-rate mortgage was 3.13%.

Today’s Mortgage Rates

Of course mortgage rates vary widely by location and personal factors like the type of home you plan to buy, your down payment and your credit score. Here are today’s advertised mortgage rates at some of mortgage industry’s largest lenders.