Today's Best Mortgage & Refinance Rates for August 5, 2020

The total volume of mortgage loan applications decreased once again last week even though mortgage rates remained at near historic lows. Despite the decline, the number of applications still outpaced 2019 numbers.

According to the Mortgage Bankers Association, overall mortgage applications for the week ending July 31 dropped 5% from the previous week. Purchase loans decreased by 2% week-over-week but remained 22% higher than the same week last year. Although refinances also slid, down 7% from the previous week, the volume was still up 84% year-over-year.

"MBA's forecast calls for rates to remain at these low levels, which will continue to spur strong refinance activity and offer homeowners relief in the form of lower monthly mortgage payments during these uncertain economic times," said Joel Kan, MBA's associate vice president of economic and industry forecasting.

The volume of purchase and refinance loan applications have been above 2019 levels for eleven straight weeks as homeowners and buyers have taken advantage of a series of record-setting interest rate drops between March and July.

What are people paying for mortgages right now?

Borrowers with 700 credit scores were charged an average of 3.534% to secure a 30-year fixed-rate purchase mortgage on Tuesday, according to Money's survey of over 8,000 mortgage lenders across the country. The average rate for a 30-year refinance was 4.3%.

What are experts saying about loan options?

Josh Lewis, certified mortgage consultant at BuyWise Mortgage, told Money:

The biggest thing to know is that in the current market with ultra low rates and a relatively flat yield curve, the interest rate savings between an ARM and a fixed rate loan is not as large as we typically see. For most borrowers, the fixed rate mortgage will be the better option."

For more on the pros and cons of adjustable rate mortgages read: With Mortgage Rates So Low, Getting a Floating Rate Mortgage Might Seem Crazy. Here's Why I Did It Anyway

What should house hunters be watching next?

On Thursday, Freddie Mac will release its weekly Primary Mortgage Rate survey. The Bureau of Labor Statistics is also set to release the new unemployment claims numbers. An increased number of claims could indicate that layoffs are increasing along with the rise in COVID-19 infections. Some experts worry the job market will eventually hurt home sales, which have been one of the few bright spots in this recession.

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.)