5 critical action steps every first-time homebuyer must know
arrow
David Bach’s
arrow First-Time Homebuyer Challenge
Get Access Now Learn More

Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research determine where and how companies may appear. Learn more about how we make money.

Advertiser Disclosure

The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

By Leslie Cook
June 2, 2020
Getty Images

As mortgage rates hit a new low last week the real estate market continues to see positive news, as sellers list more homes to attract eager buyers.

In an interview with CNBC, Zillow chief executive Richard Barton indicated that traffic to the real estate website’s for-sale listings is 50% higher than it was a year ago. Zillow’s pending home sales are up 49% since April 10, the height of the economic shutdown caused by the COVID-19, he added, indicating that buyers are still looking for purchase opportunities despite the uncertainty caused by the pandemic.

According to data from Redfin, a Seattle-based real estate company, 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.) Areas of the country that weren’t as affected by the pandemic include tech-heavy cities like Seattle and Austin have seen a quicker rebound in homes sales.

Ads by Ad Practitioners
Is now the right time to Refinance?
Find out if refinancing makes sense for you. Click your state to view local rates.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
View Rates from Quicken Loans
ADVERTISEMENT

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.

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.

Quicken

Quicken, a non-bank lender based in Detroit, is the nation’s leading mortgage lender by dollar origination volume.

Mortgage rates advertised for June 2:

30-year fixed: 3.617%

15-year-fixed: 3.088%

(Quicken doesn’t advertise a five-year adjustable rate. Rates are APRs.)

Wells Fargo

Based in San Francisco, Wells Fargo has more than 7,000 locations.

Mortgage rates advertised for June 2:

30-year fixed: 3.218%

15-year-fixed: 2.702%

5-year ARM: 2.909%

(Rates are APRs.)

JP Morgan Chase

Based in New York, JP Morgan Chase has nearly 5,000 U.S. branches.

Mortgage rates advertised for June 2:

30-year fixed: 3.083%

15-year-fixed: 2.617%

5-year ARM: 2.819%

(Rates based on New York City zip code 10006. Rates are APRs.)

Ads by Ad Practitioners
Buying A House During COVID? Get Prequalified First.
A pre-qualification letter gives you strength like a cash buyer.
View Rates from Quicken Loans
ADVERTISEMENT


More from Money:

Best Mortgage Lenders of 2020

The Real Estate Market Is Hot Despite Coronavirus. Here’s How Homebuyers Can Still Get a Good Deal

Where Home Prices Are Heading in the Age of Coronavirus

Advertiser Disclosure

The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

EDIT POST