Today's Best Mortgage & Refinance Rates for May 28, 2020

There's more good news today for those looking to refinance or purchase a home as mortgage rates hit a new all-time for that third time since the beginning of 2020.

As the COVID-19 related lockdown continues to ease up, refinancings continue to make up the bulk of new mortgage applications, representing two-thirds of all loans, according the Mortgage Bankers Association. Roughly twice as many Americans have applied for a new mortgage during the past week as did during the same period last year. With even lower interest rates coming into play, expect to see more homeowners looking for refinancing opportunities.

Home purchase activity continues to rise, increasing 2.7% for the week ending May 22 and up 9% year over year. States with the largest increases in purchase activity include New York and California, with both experiencing double-digit gains. Home buyers in some hot markets have been working around pandemic precautions, even bidding on homes they haven’t seen in person.

“The economic lockdowns – occurring from mid-March through April in most states – have temporarily disrupted home sales,” said Lawrence Yun, chief economist at the National Association of Realtors said last week. “But the listings that are on the market are still attracting buyers and boosting home prices.”

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.