Today's Best Mortgage & Refinance Rates for August 10, 2020

Bidding wars remained common during the month of July as homebuyers took advantage of record-low interest rates and sellers benefited from a shortage of inventory.

According to real estate brokerage Redfin, 54% of the company's offers were involved in bidding wars in July, down a touch from 56% in June. Single-family homes were most likely to be involved in bidding wars, according to the report, as were homes in the $400,000 to $500,000 range. If a home receives at least one competing bid, Redfin considers it to be part of a bidding war.

"Bidding wars may slow down if interest rates tick up again, which could happen if we get good news about a coronavirus vaccine or more clarity around the outcome of the upcoming U.S. Presidential election," said Daryl Fairweather, Redfin chief economist. "If coronavirus cases continue to climb, more employers will likely make flexible remote work policies standard procedure, which will drive further migration out of large, expensive cities. As a result, we may see bidding wars gain more traction in suburban areas and small towns."

Salt Lake City saw the most competition for homes with 75% of Redfin offers facing competition, followed by San Francisco/San Jose with 67%, and San Diego with 65%.

What are people paying for mortgages right now?

Borrowers with 700 credit scores were charged an average of 3.583% to secure a 30-year fixed-rate purchase mortgage on Thursday, according to Money's survey of over 8,000 mortgage lenders across the country. The average rate for a 30-year refinance was 4.42%.

Average Refinance Rates Today

A homeowner with excellent credit who qualifies for the lowest rates as reported by Freddie Mac can save a significant amount of money when refinancing. A year ago the average mortgage rate was 3.60%. A homeowner with a $250,000 mortgage balance paying 3.60% on a 30-year loan could cut their monthly payment from $1,137 to $1,038 by financing at today’s lower rates. (It is important to consider closing fees and that refinancing could reset the clock on your mortgage, meaning you will have to make payments longer.)

What should house hunters be watching next?

On Monday afternoon, the Mortgage Bankers Association will release its latest survey of mortgage loans in forbearance. The number of loans in deferment plans has been steadily declining from a high of 4.3 million in April to an estimated 3.8 million the week ending July 26.

What should you expect when selling a home?

Tampa Redfin real estate agent Brian Walsh on the current seller's market:

If you priced your home right and you haven't Crayola crayoned all over the wall, you're going to get at least a handful of offers."

For more on the bidding wars in the real estate market, read: Bidding Wars are Back. Here's How to Win Your Dream Home.

What are today’s advertised rates?

Of course, mortgage rates vary widely by location and personal factors like the size of your down payment and your credit score. Here are today’s advertised mortgage rates at some of the mortgage industry’s largest lenders. (All rates are APRs. The rates you see may be different.)